Federal agents arrested a key figure from ex-New York City Mayor Eric Adams’ circle on Wednesday morning as part of an extensive corruption investigation.
Frank Carone, aged 56, was apprehended at his $2 million residence on federal corruption allegations tied to a bribery scheme, as reported by multiple sources including Politico and the New York Times.
Carone was initially appointed as the first chief of staff under Adams’ tenure as mayor before pivoting to launch his own lobbying business.
On Wednesday, an unsealed federal indictment laid out several charges against him, including bribery, wire fraud, and money laundering.
According to the prosecutors, Carone allegedly received numerous bribes from Queens hotel owner Yan Po Zhu and Zhu’s assistant, Crystal Chen, following a contract awarded in 2022 for housing migrants.
In total, Carone was paid around $120,000 by Zhu and Che for the emergency shelter contract, prosecutors said.
The money was passed through a law firm owned by his brother, Anthony Carone, according to the indictment. Anthony was also arrested at his home on Wednesday in connection with the federal charges.
The alleged bribery scheme transpired during a time when New York City experienced an influx of migrant asylum seekers.
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
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 alleged that Zhu solicited Carone’s assistance in obtaining an Emergency Shelter Contract for his hotel at his Long Island residence
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
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.
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.’
This is a breaking news story…