OPINION AND ORDER Plaintiffs City of Mount Vernon (the “City”) and City of Mount Vernon Urban Renewal Agency (the “URA”) bring this action against Ernest D. Davis; Maureen Walker; Jaime Martinez; Marcus Griffith; Andre Wallace; Robert Kelly; Atlantic Development Group, LLC; Peter Fine; Blue Rio, LLC (a New York Corporation) (“Blue Rio NY”); Blue Rio Kenwood, LLC; Blue Rio, LLC (a Connecticut Corporation) (“Blue Rio CT”); Titus Mount Vernon, LLC; John Saraceno; and John Does Nos. 1 to 10, alleging a violation of the Computer Fraud and Abuse Act (the “CFAA”), 18 U.S.C. §1030 et seq., as well as several state law claims.Now pending are motions to dismiss the amended complaint pursuant to Rules 12(b)(1) and 12(b)(6) from (i) Davis, Walker, Griffith, and Wallace (collectively, the “City defendants”) (Docs. ##54, 57, 60, 61); (ii) Titus Mount Vernon, LLC, and Saraceno (collectively, the “Titus defendants”) (Doc. #84); (iii) Atlantic Development Group, LLC, Blue Rio NY, Blue Rio CT, Blue Rio Kenwood, LLC, and Fine (collectively, the “Atlantic defendants”) (Doc. #108); (iv) Martinez (Doc. #115); and (v) Kelly (Doc. #80).1 Kelly, proceeding pro se, also moves to impose sanctions. (Doc. #107).For the reasons set forth below, the motions are GRANTED IN PART and DENIED IN PART.The Court has subject matter jurisdiction under 28 U.S.C. §1331.BACKGROUNDIn deciding the pending motions, the Court accepts as true all well-pleaded factual allegations in the amended complaint and draws all reasonable inferences in plaintiffs’ favor, as set forth below.I. The URA’s Compliance Issues with Federally Funded Loans for Affordable HousingSeveral of plaintiffs’ allegations concern federally funded loans for affordable housing. According to the amended complaint, the City receives funds from the United States Department of Housing and Urban Development (“HUD”) under two programs: the Community Development Block Grant (“CDBG”) program and the Home Investment Partnership (“HOME”) program. Using these funds, the URA issues loans to developers to support the creation or redevelopment of affordable housing within the City.On January 1, 2016, Richard Thomas took office as the City’s mayor, replacing Davis. About a month into his term, Mayor Thomas allegedly became aware of “significant issues with the administration, accounting, and compliance of the URA.” (Am. Compl. 154). Specifically, Mayor Thomas learned that internal audits of the URA demonstrated “egregious oversights and mishandling of funds by the previous administration,” including a $6 million discrepancy in funds. (Id.
156, 160). According to these audits, the URA failed to comply with federal regulations and had entered into agreements with “unconscionably low interest rates on significant loans with no payments, not even interest payments, due until the maturity of the loan.” (Id. 158). These discoveries were supported by a 2015 HUD report which questioned the URA’s management of funds under the HOME program. It found URA personnel did not have the “knowledge to ensure compliance,” and that the agreements with developers were not fully compliant with federal regulations. (Id.
