Federal agents arrested Frank Carone on Wednesday, charging the former chief of staff to Democratic ex-New York City Mayor Eric Adams with accepting more than $120,000 in bribes to steer a multimillion-dollar migrant shelter contract to a hotel that city officials had repeatedly rejected as unsuitable.
The 13-count indictment names Carone, 56, alongside his brother Anthony Carone, Queens hotel owner Yan Po "Andy" Zhu, and Zhu's employee Crysten Chen. All four defendants pleaded not guilty and were released on bail, the New York Post reported.
The charges mark the latest in a widening corruption cloud around Adams and his inner circle. And in a separate but related move the same day, FBI agents and NYPD Internal Affairs investigators searched the homes of current and former senior NYPD leaders in a distinct bribery probe, raising fresh questions about how deep the rot extends inside New York City's power structure.
Prosecutors allege Carone used his position as the mayor's top aide to push the Department of Social Services into awarding a $6.825 million emergency migrant housing contract to the Microtel Inn, a Long Island City hotel owned by Zhu. The department had repeatedly turned the property down, ABC News reported.
In exchange, Zhu and Chen allegedly funneled $120,000 to Carone through 12 monthly payments of $10,000 each, routed through Anthony Carone's law firm. The indictment charges all four defendants with bribery, wire fraud, and money laundering.
One text message cited in the indictment captures the alleged relationship in plain terms. Zhu wrote to Carone: "Thank you my big guy." The federal case paints a picture of a public official who allegedly converted his access to city contracting decisions into a personal revenue stream, with his brother's firm serving as the pass-through.
The indictment goes beyond the bribery itself. Prosecutors allege the Carone brothers tried to cover their tracks after learning a grand jury had opened an investigation in the spring of 2024. The two allegedly created a backdated promissory note designed to make the $120,000 in payments look like a legitimate loan rather than what prosecutors say they were: bribes.
That alleged move adds an obstruction dimension to the case, suggesting investigators believe the defendants actively worked to frustrate the probe once they became aware of it. The distinction matters legally. Obstruction allegations can sharpen sentencing exposure and signal to judges that defendants tried to undermine the process itself.
The pattern of federal bribery probes targeting Democratic officials tied to shelter contracts in New York City continues to grow, with prosecutors showing sustained interest in how migrant crisis spending was directed and who profited.
Carone's legal team wasted no time pushing back. Attorneys Andrew Goldstein and Russell Capone issued a statement defending their client's record.
"Frank Carone served the City of New York honorably. He was instrumental in helping the city navigate an unprecedented migrant crisis, but had absolutely nothing to do with granting the temporary migrant shelter at the center of these charges."
Attorney Arthur Aidala, also representing Carone, took a sharper tone. He called the indictment a case of prosecutorial overreach, framing the investigation as a fishing expedition.
"Today's indictment is a sad day for our criminal justice system. It epitomizes the government first finding a target and then spending three years and enormous taxpayer resources to find a crime."
The defense strategy appears to rest on two pillars: that Carone played no role in the actual contract decision, and that federal investigators locked onto him first and built a case backward. Whether that argument holds up will depend on what the documentary evidence, including the text messages and financial records cited in the indictment, reveals at trial.
On the same day Carone was arrested, federal and NYPD investigators executed search warrants at the homes of several high-ranking current and former police officials. Newsmax reported that those searched included James McCarthy, Chief of Manhattan South, and Tarik Sheppard, a former Deputy Commissioner. The searches are part of a related but distinct bribery investigation involving allegations of misconduct in promotions, assignments, and misappropriation of funds within the NYPD.
NYPD Commissioner Jessica Tisch addressed the raids directly.
"When I became Police Commissioner, I promised New Yorkers that under my leadership the NYPD would conduct itself with integrity and that there would be a thorough investigation of any claim that members of service failed to meet that standard."
Investigators have not publicly confirmed whether any charges are imminent in the NYPD probe, or how many officers may ultimately face scrutiny. The dual-track nature of the investigations, one targeting City Hall's inner circle and another targeting police leadership, paints a picture of systemic concern that extends well beyond any single official.
Eric Adams, a Democrat who left office under his own legal cloud, has not been charged in connection with the Carone indictment. His spokesman, Todd Shapiro, offered a brief statement: "This is an ongoing legal matter and my prayers are with his family." The Washington Examiner noted that the arrest extends the corruption shadow that has trailed Adams and his associates even after he departed City Hall.
The Carone case fits a broader pattern of Democratic officials facing federal criminal accountability for alleged self-dealing. Similar dynamics have played out in cases ranging from EPA criminal referrals targeting Democratic officials accused of steering contracts to themselves to the long-running prosecution of former Illinois House Speaker Michael Madigan.
Carone served as Adams's first chief of staff during a period when the city was scrambling to house tens of thousands of migrants arriving from the southern border. The emergency spending that followed created enormous contracting opportunities, and prosecutors now allege that Carone saw those opportunities as personal ones.
The Madigan corruption case and the Carone indictment share a common thread: powerful political insiders allegedly converting public authority into private gain, with federal prosecutors willing to invest years to build the case.
All four defendants have entered not-guilty pleas. The case will now move through pretrial proceedings in federal court, where prosecutors will be required to turn over discovery, including the financial records, text messages, and communications that form the backbone of the indictment.
Investigators will need to establish that Carone personally intervened in the contracting process and that the payments were not, as the defense may argue, legitimate legal fees or loans. The alleged backdated promissory note could become a central piece of evidence, cutting against any claim that the transactions were above board.
Authorities have not publicly confirmed whether additional individuals may face charges in either the Carone case or the parallel NYPD investigation. The AP reported that the arrest is the latest in a string of corruption allegations surrounding Adams and his associates, suggesting federal investigators may not be finished.
When billions of public dollars flow through emergency contracts with minimal oversight, the question is never whether someone will try to cash in. The question is whether anyone in power will stop them before the taxpayers foot the bill twice: once for the contract, and again for the prosecution.
