Former Eric Adams aide indicted in migrant shelter bribery scheme

Frank Carone was indicted in Brooklyn federal court on 13 counts. The former chief of staff and longtime adviser to Eric Adams was charged along with his brother, Anthony Carone. Queens hotel owner Yan Po Zhu and hotel employee Crystal Chen were also charged in a scheme tied to New York City’s 2022 migrant shelter crisis.

Prosecutors allege that Carone helped steer a $6.8 million emergency shelter contract to Zhu’s Long Island City hotel in exchange for about $120,000 in bribes. They say the payments were routed through Anthony Carone’s law firm account and disguised as legal fees. The indictment includes bribery, wire fraud, money laundering and obstruction-related charges, and it was filed under seal before the arrests and unsealed June 24, 2026.

Investigators say the New York City Department of Social Services initially rejected the hotel’s application before Carone allegedly intervened.

All four defendants pleaded not guilty and were released on bond with passport surrender and travel restrictions. Prosecutors said the alleged scheme began in mid-2022, when buses of migrants were arriving from southern states and the city was under intense pressure to find shelter beds quickly. The U.S. attorney’s office said the arrangement was built to exploit that emergency for profit.

He played a key part in Adams’ 2021 mayoral campaign, then served as chief of staff in 2022 before later forming a political consulting firm in 2023. His lawyer, Arthur Aidala, attacked the case as weak and circumstantial, while Assistant U.S. Attorney Sara Winik said Carone had been entrusted to run city government but put his own wealth and status ahead of duty.