A 13-count federal indictment unsealed June 24 in the Eastern District of New York charges Frank Carone, former chief of staff to New York City Mayor Eric Adams, with accepting approximately $120,000 in bribes to steer a nearly $7 million emergency migrant shelter contract to a Queens hotel [1][2]. Co-defendants include Carone's brother Anthony Carone, Queens hotel owner Yan Po Zhu, and hotel employee Crystal Chen [2][3]. All four defendants pleaded not guilty and were released on bond [2].
The indictment alleges that Yan Po Zhu and Crystal Chen paid the bribes to Frank Carone in exchange for his use of official influence to direct the city contract to the Microtel hotel they operated [1][3]. Anthony Carone is charged with helping funnel the payments [2]. The 13 counts span charges including bribery, wire fraud, and money laundering, reflecting the government's characterization of the payment conduit as a structured scheme rather than a single corrupt transaction [3]. The Eastern District of New York and the FBI are leading the prosecution [1].
The indictment marks another senior figure in the Adams administration to face federal corruption charges as prosecutors continue a broad probe of New York City government under Adams [2][3]. Adams himself was indicted in September 2024 on separate federal corruption charges, and the Justice Department moved to dismiss that case earlier this year under circumstances that drew significant public scrutiny [1]. Carone, a longtime political ally of Adams and a prominent Brooklyn Democratic figure, served as chief of staff before leaving that role [1][2]. The migrant shelter contract at issue arose from the city's emergency procurement process, which operates with expedited procedures and reduced competitive-bidding requirements [3].
All four defendants face arraignment proceedings in the Eastern District following their not-guilty pleas [2]. Defense counsel for Carone has disputed the government's characterization of the conduct [1]. The case is assigned to the Eastern District, and no trial date has been set. Given the scale of the ongoing probe and the number of administration-linked figures now under indictment, prosecutors are likely to pursue additional cooperation agreements as the litigation develops [3].