Frank Carone, a former chief of staff to New York City Mayor Eric Adams, was arrested Wednesday on federal corruption charges. Prosecutors allege Carone, 56, accepted approximately $120,000 in bribes from a Queens hotel owner, Yan Po Zhu, and Zhu's employee, Crystal Chen, in exchange for awarding a lucrative city contract to house migrants.
The federal indictment, unsealed Wednesday, charges Carone, his brother Anthony Carone, Zhu, and Chen with conspiracy, bribery, wire fraud, and money laundering. The Carone brothers also face charges of obstruction of justice and filing a false tax return.
Prosecutors claim the alleged bribery scheme exploited New York City's migrant crisis, which saw an influx of asylum seekers in 2022. The city was securing "Emergency Shelter Contracts" with hotels to address a shortage of housing. According to the indictment, the group devised a plan to profit from this situation by securing a multimillion-dollar contract for Zhu's hotel, the Microtel in Long Island City.
The indictment details a series of events in June 2022, including a meeting between Zhu and Carone at Zhu's Long Island residence, which prosecutors allege was where the bribery plan was brokered. Photos of Carone at Zhu's residence were included in the indictment. Shortly after, Zhu allegedly messaged Carone about contract approval, to which Carone responded, "Ok standby." Three days later, an employee of the Department of Social Services noted that the Microtel's approval came "directly from the top."
The Microtel hotel received a $6.8 million contract in the fall of 2022. Prosecutors allege that after the contract was awarded, Zhu and Chen began making bribe payments to Carone. These payments were allegedly funneled through a law firm owned by Anthony Carone and used for personal expenses by the Carone brothers.
Arthur Aidala, an attorney for Frank Carone, stated that his client maintains his innocence. "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," Aidala said in a statement. He suggested the investigation began after Carone spoke out against the previous White House's immigration policies and their impact on New York City.
Carone served as Adams' first chief of staff for one year before leaving to establish a lobbying firm. He was a close ally of Adams and played a role in his political rise. A spokesperson for Adams described Carone as having "dedicated decades of his life to public service, the legal profession and helping countless individuals, businesses and charitable organizations throughout New York."
Separately, federal agents also searched the homes of current and former New York Police Department leaders as part of a different bribery investigation, according to sources familiar with the matter. These searches were not related to Carone's arrest.