A senior adviser to former New York City Mayor Eric Adams was arrested Wednesday morning by federal agents as part of a wide-ranging corruption investigation.
Frank Carone, 56, was taken into custody at his $2 million home on federal corruption charges tied to an alleged bribery scheme.
Carone served as the first chief of staff in Adams’ mayoral administration before leaving City Hall to launch a lobbying firm.
A federal indictment unsealed Wednesday charged Carone, his brother Anthony Carone and two others with conspiracy, two counts of bribery, use of interstate facilities to commit bribery, wire fraud and money laundering.
The Carone brothers also face charges of obstruction of justice and filing a false tax return.
Prosecutors allege Frank Carone accepted multiple bribes from Queens hotel owner Yan Po Zhu and Zhu’s employee, Crystal Chen. The case centers on a 2022 contract awarded to the hotel to provide emergency housing for migrants.
According to prosecutors, Carone received approximately $120,000 from Zhu and Chen in connection with the emergency shelter agreement.
The indictment alleges the payments were routed through a law firm owned by Carone’s brother. Anthony Carone was also arrested at his home on Wednesday.
Former Chief of Staff to Mayor Eric Adams Frank Carone was arrested by federal agents in NYC on Wednesday
Prosecutors included photos in the indictment of Carone seen at Zhu’s residence in Long Island in June of 2022
Prosecutors have argued that Carone accepted bribery payments to award a multi-million dollar contract to Zhu
The alleged bribery scheme transpired during a time when New York City experienced an influx of migrant asylum seekers.
City government worked with hotels to secure ‘Emergency Shelter Contracts’ to combat the lack of housing for those in need.
Prosecutors said that the Carone brothers, Zhu and Chen ‘devised and executed a scheme to exploit the City’s migrant crisis for profit.’
The four allegedly entered into a ‘multimillion-dollar Emergency Shelter Contract’ involving Zhu’s hotel, the Microtel in Long Island City.
Zhu and Chen had initially failed to secure the contract after hiring a consultant. Prosecutors cited a June 14, 2022, meeting in which the Department of Social Services said its hotel was not an option because there were already enough shelter contracts in Long Island City.
Zhu then allegedly ‘leveraged his burgeoning personal relationship’ with Carone to secure the contract.
Prosecutors included photos of the two together at Zhu’s Long Island residence on June 3, 2022, alleging that the plan was brokered that evening.
Three days later, Zhu allegedly messaged Carone, asking whom he should contact for approval of his hotel for the shelter program, to which Carone responded, ‘Ok standby.’
Prosecutors argued that photos showing Zhu and Carone together, along with text messages about the contract, revealed the alleged bribery scheme.
Prosecutors alleged that Zhu solicited Carone’s assistance in obtaining an Emergency Shelter Contract for his hotel at his Long Island residence
Federal prosecutors have alleged that Carone used his position in Adams’ administration to secure a contract for a hotel in Queens
One text exchange cited in the indictment showed Zhu messaging Carone, ‘My brother 29-12 40 Ave please help me get done we need to refinance.’
Prosecutors cited multiple email exchanges among city officials, including one in which an employee said that Microtel’s approval came ‘directly from the top.’
Microtel received a $6.8 million contract in the fall of 2022. Prosecutors alleged that Zhu and Chen then started making bribe payments to Carone.
The Carone brothers are accused of using the bribe payments for personal expenses such as ‘travel, dining, fitness memberships, clothing purchases, groceries, and the like,’ according to the indictment.
Allegations of federal corruption against Carone were first reported on earlier this year. He denied any wrongdoing at the time, claiming that the investigation was founded on ‘baseless accusations’ and ‘stereotypical accusations.’
Arthur Aidala, a lawyer for Carone, told Politico that he had been aware of the federal investigation.
‘Frank Carone was part of an administration that publicly challenged what it viewed as the previous White House’s dangerous immigration policies and their harmful impact on New York City,’ Aidala said.
Carone was a longtime supporter of Adams. He served as the former mayor’s chief of staff for one year. The two are seen above outside of City Hall in 2022
Carone has been an influential figure in New York City politics and has shown support for the NYPD. He spoke at the Policeman’s Ball in 2022
A spokesperson for Adams said Carone ‘dedicated decades of his life to public service, the legal profession and helping countless individuals, businesses and charitable organizations throughout New York’
‘Three years ago, after speaking out on these issues, Mr. Carone was notified that he was under investigation by federal authorities.’
‘Following an extensive three year investigation that examined numerous aspects of Mr. Carone’s personal life, prosecutors ultimately brought these charges. Mr. Carone maintains his innocence.’
Carone has a long history in New York City politics. He served as a counsel to the Democratic Party and was a close ally of Adams during his political career.
Carone helped mentor Adams, supporting the former mayor’s rise from Brooklyn borough president to his controversial tenure in City Hall.
Todd Shapiro, a spokesperson for Adams, told Politico that the issue was an ‘ongoing legal matter’ adding that Carone ‘has dedicated decades of his life to public service, the legal profession and helping countless individuals, businesses and charitable organizations throughout New York.’
