Frank Carone Indicted in Federal Bribery Case

Frank Carone, a former chief of staff to ex-New York City Mayor Eric Adams, pleaded not guilty Wednesday to federal charges that he accepted about $120,000 in bribes to steer a migrant shelter contract to a Queens hotel.

Carone and three co-defendants were arrested early June 24, 2026, and appeared in federal court in Brooklyn, where each entered not-guilty pleas. The charges are allegations, and the defendants are presumed innocent.

Who was charged

The indictment names Frank Carone; his brother, Anthony Carone; hotel owner Yan Po Zhu; and Crystal Chen, described by prosecutors as Zhu's business manager. According to Gothamist, court records show a 13-count indictment that includes bribery, money laundering and other offenses, filed under seal with arrest warrants ordered as early as mid-June.

Spectrum News NY1 reported the indictment was returned June 12 and unsealed Wednesday. The charges carry a potential of up to 20 years in prison upon conviction, according to Spectrum News NY1. ABC7 New York reported the defendants face 13 counts including conspiracy, federal program bribery and obstruction.

The case was brought by the U.S. Attorney's Office for the Eastern District of New York. Adams was not accused of wrongdoing in the indictment.

The alleged scheme

Prosecutors allege that beginning in 2022, as the city scrambled to expand shelter capacity during an influx of migrants, Zhu and Chen sought an emergency contract for the Microtel Inn by Wyndham in Long Island City, Queens, which Zhu owns. City officials repeatedly rejected the site, telling them it was not viable because the surrounding area already had many shelters, according to the indictment.

Zhu then turned to Carone, prosecutors say. The indictment alleges Carone, then Adams' chief of staff, agreed to intercede in exchange for roughly $120,000 funneled through a bank account tied to a law firm operated by his brother, Anthony Carone. The hotel ultimately received more than $6.8 million in emergency shelter contracts, prosecutors said.

The indictment quotes a September 2022 text exchange in which Zhu asked for help and Carone requested the hotel's address; Zhu replied, "Thank you my big guy." Prosecutors said Carone, who is also charged with obstruction of justice, deleted a related message after learning he was under investigation. The Carone brothers and Zhu socialized frequently, including at Zhu's Long Island home, according to the indictment.

What prosecutors said in court

Assistant U.S. Attorney Sara Winik told the court that Carone "was entrusted to run our city government but put his own wealth and status above duty," according to Gothamist.

Prosecutors alleged the payments were disguised as legal fees through a "sham retainer agreement," and that the Carone brothers spent most of the money on personal expenses including travel, meals and clothing. The indictment also says Carone did not report the payments to the New York City Conflicts of Interest Board while serving as chief of staff.

Response

Carone's attorney, Arthur Aidala, called the indictment "weak" and said it is based "on purely circumstantial evidence that's not worth the paper upon which it's printed," according to NBC New York and Gothamist.

In a statement, Aidala added: "Mr. Carone maintains his innocence and looks forward to addressing these allegations through the legal process." An attorney for Zhu, Stephen Scaring, said his client "is anxious to establish his innocence." Attorneys for Anthony Carone and Chen could not immediately be reached, the sources reported.

Todd Shapiro, a spokesperson for Adams, said Carone "dedicated decades of his life to public service, the legal profession, and helping countless individuals, businesses, and charitable organizations throughout New York." A spokesperson for Mayor Zohran Mamdani's office said the administration "takes these allegations of bribery extremely seriously," according to ABC7 New York.

Bail and conditions

A magistrate judge ordered the defendants released pending trial. Reports differ on some figures: NBC New York reported Frank Carone was released on $2 million bail and Zhu on $8 million, while Gothamist reported bail of $2 million for Frank Carone, $500,000 for Anthony Carone, $100,000 for Chen and $8 million for Zhu. The defendants must surrender passports, may travel only to previously approved locations and cannot discuss the case with one another, Gothamist reported.

Background

Carone helped run Adams' 2021 mayoral campaign and served as chief of staff during Adams' first year in office in 2022 before launching a consulting and lobbying firm. He has longstanding ties to the Brooklyn Democratic Party. The charges add to a series of federal inquiries touching Adams' orbit; Adams himself was previously indicted on bribery charges that were later dismissed. The case follows other recent federal charges tied to immigration enforcement drawing national attention. Separately, federal authorities searched homes of current and former NYPD leaders Wednesday in a different bribery investigation, according to multiple outlets.

Frequently Asked Questions

What is Frank Carone charged with?

According to a federal indictment in the Eastern District of New York, Carone faces a 13-count indictment including bribery, wire fraud, money laundering and obstruction of justice. The charges are allegations, and he has pleaded not guilty.

How much was Carone allegedly paid?

Prosecutors allege Carone accepted about $120,000 in bribes, funneled through a law firm bank account tied to his brother, Anthony Carone, in exchange for steering a migrant shelter contract to a Queens hotel.

Was Eric Adams charged?

No. Adams was not accused of wrongdoing in Carone's indictment. Adams was separately indicted earlier on bribery charges that were later dismissed.

Who else was charged in the case?

Anthony Carone, hotel owner Yan Po Zhu and hotel business manager Crystal Chen were also charged. All four defendants pleaded not guilty and were released on bond with conditions.

Sources

Reporting compiled from court records and the cited source outlets.