Eric Adams Ally Arrested In Federal Bribery Case

NEW YORK, NY— Federal agents arrested former New York City Chief of Staff Frank Carone on Wednesday, accusing him of accepting bribes in exchange for helping steer an emergency migrant shelter contract to a Long Island City hotel, according to a federal indictment.

Authorities also arrested Carone's brother, Anthony Carone; hotel owner Yan Po Zhu; and Zhu employee Crystal Chen.

Federal prosecutors allege the four defendants "devised and executed a scheme to exploit the City's migrant crisis for profit" between June 2022 and December 2023.

Prosecutors contend Frank Carone accepted $120,000 in bribes from Zhu through Anthony Carone in exchange for helping secure a multimillion-dollar city contract for a hotel owned by Zhu.

Investigators allege the payments moved through a law firm where Anthony Carone was a partner.

Agents arrested Frank Carone at his Manhattan home early Wednesday.

Prosecutors are expected to unseal the indictment in federal court in Brooklyn.

The alleged scheme began while Carone served as chief of staff to Mayor Eric Adams.

Carone left City Hall in December 2022 and later launched a lobbying and consulting firm.

Arthur Aidala, Carone's attorney, rejected the allegations.

"After intense investigations over many years, all the government was able to come up with was this weak indictment based on purely circumstantial evidence that's not worth the paper upon which it's printed,"Aidala said.

Aidala said Carone intends to fight the charges.

"We look forward to appearing before a jury and obtaining a swift acquittal," he said.

Carone, a longtime Adams confidant and attorney, had already come under scrutiny from federal prosecutors.

The New York Times reported earlier this year that Brooklyn-based federal investigators were examining his business dealings.

A federal grand jury began hearing evidence in January.

Carone helped lead Adams' reelection effort before leaving City Hall. He also played a role in several business ventures tied to the former mayor after his departure from government.

Todd Shapiro, a spokesman for Adams, said the former mayor was monitoring the case.

"Frank Carone has dedicated decades of his life to public service, the legal profession, and helping countless individuals, businesses, and charitable organizations throughout New York," Shapiro told NY Daily News. "This is an ongoing legal matter and my prayers are with his family."

Campaign finance records show Zhu donated the maximum allowable contribution of $2,100 to Adams' reelection campaign in June 2023. Records also show Zhu contributed $2,000 to Adams' 2021 mayoral campaign in December 2018, before Adams formally entered the race.

Chen, who worked as an office manager for East Times Group, also donated to Adams' campaign, contributing $250 in September 2021.

The case marks the latest federal corruption investigation connected to figures in Adams' political orbit following a series of scandals that shadowed his administration.