New York Comptroller’s Trip to Israel Raised Ethical Concerns, State Commission Said

A NEW YORK state oversight board raised ethics concerns about a trip by state Comptroller Tom DiNapoli to Israel that a local pro-Israel Jewish group sponsored.

The revelation comes amid renewed scrutiny of DiNapoli’s spending spree on Israel Bonds, a financial instrument that directly funds the state of Israel.

The trip was paid for by the Jewish Community Relations Council of New York, which has a financial relationship to Israel Bonds, the organization that issues Israeli government debt securities in the U.S.

On Sunday, DiNapoli and other state and local electeds marched in the parade again, joined by an array of extremist Israeli political figures including Bezalel Smotrich, the current finance minister and a far-right champion of illegal settlements.

In his 18 years as comptroller — and particularly in the months and years following October 7 and the launch of Israel’s genocide in Gaza — DiNapoli has turned the state’s pension fund into one of the largest holders of Israel Bonds nationwide. Since the February 2024 trip, Dinapoli has invested $120 million of the state’s common retirement fund in the instruments, bringing the total investment of state pension funds in Israel Bonds to $332.5 million.

Critics of the investments also point to a fiscally responsible argument against the bonds. Unlike traditional foreign-debt assets, Israel Bonds cannot be sold on a secondary market and instead must be held until they mature. That makes them a potentially unsound bet, especially considering the rapid decline of Israel’s credit rating in recent years.