Former NYC Mayor Adams Aide Frank Carone Indicted In Migrant Shelter Bribery Case
Frank Carone, ex-chief of staff to Mayor Eric Adams, was arrested and indicted on federal bribery charges tied to a $6.8 million migrant shelter contract on June 24, 2026.[1]
Carone, his brother Anthony Carone, hotel owner Yan Po Zhu and hotel employee Crystal Chen were arraigned in Brooklyn federal court and pleaded not guilty, prosecutors said.[1] Prosecutors allege Carone accepted about $120,000 in bribes that were funneled through Anthony Carone's law firm to secure the shelter contract for Zhu's Queens hotel, which city Social Services officials had previously rejected.[1] The indictment cites text messages in which Zhu thanked Carone as "my big guy." PBS News Prosecutors say Zhu later told partners to pay Carone for a year and allege Carone deleted a message, prompting an added obstruction count.[1] Bond was set at different levels, ranging from $100,000 for Chen to $8 million for Zhu.[1]
Federal prosecutors in Brooklyn opened a corruption investigation into Carone in early 2024. Subpoenas to clients followed, and by January 2026 a federal grand jury was hearing evidence into his business dealings and tenure as chief of staff. In April 2026 separate indictments charged three associates linked to his finance firm in an alleged insurance fraud scheme. FBI and NYPD agents also executed search warrants at the homes of NYPD Chief of Manhattan South James McCarthy, former Deputy Commissioner Tarik Sheppard and former Chief of Department Jeffrey Maddrey.[1]
Initial reports of Carone's arrest surfaced Wednesday morning, as outlets including CBS News broke the story.[2] Later that day prosecutors unsealed an indictment and court filings in Brooklyn that spelled out alleged payments, texts and the steering of the migrant shelter contract.[1]
Authorities say the inquiry has expanded beyond Carone to include current and former NYPD officials, reflecting a probe that now spans city contract awards and police leadership.[2]
The mainstream summary does not mention the broader context of corruption risks associated with public procurement during emergencies, a phenomenon highlighted by a 2026 UN DESA Policy Brief. This brief argues that crises can exacerbate corruption due to the need for rapid resource allocation, which can lead to inadequate oversight and increased opportunities for bribery. Such structural vulnerabilities may have played a significant role in the alleged bribery scheme involving Carone and the migrant shelter contracts. Additionally, while the summary focuses on the specific bribery allegations against Carone, it overlooks the fact that more than 239,200 asylum seekers have entered New York City's shelter system since spring 2022, reflecting the scale of the crisis that may have influenced the urgency and potential for corruption in contract allocations. This context suggests that the issues surrounding Carone's indictment are part of a larger systemic problem within emergency management and public procurement processes, which are often susceptible to exploitation during times of crisis.[3][4]
Show source details & analysis (4 sources)
📊 Relevant Data
As of September 28, 2025, approximately 33,300 asylum seekers were residing in New York City-funded shelters, down 51% from a peak of nearly 70,000 in January 2024; more than 239,200 asylum seekers have entered the city's shelter system since spring 2022.
Asylum Seeker Census — Office of the New York City Comptroller
📌 Key Facts
- On Wednesday, June 24, 2026, Frank Carone, former chief of staff to Mayor Eric Adams, was arrested in New York City as part of a federal bribery investigation (Frank Carone).
- On Wednesday, June 24, 2026, Frank Carone, his brother Anthony Carone, hotel owner Yan Po Zhu and hotel employee Crystal Chen were arraigned in Brooklyn federal court and pleaded not guilty to bribery and related charges (Brooklyn federal court).
- Prosecutors allege Frank Carone accepted about $120,000 in bribes from Yan Po Zhu and Crystal Chen, funneled through Anthony Carone’s law firm, in exchange for steering a $6.8 million migrant shelter contract to Zhu’s Queens hotel that city Social Services officials had previously rejected (a $6.8 million migrant shelter contract).
- The indictment cites specific text messages, including a September 2022 exchange in which Zhu thanked Carone as “my big guy” and a December 2023 message from Zhu saying “I asked my partners to pay you for a year” that Carone allegedly deleted, and prosecutors have added an obstruction count tied to the deleted text (the indictment).
- Bond was set at varying levels for the four defendants, ranging from $100,000 for Crystal Chen to $8 million for Yan Po Zhu (Bond).
- Reporting indicates the current phase of the inquiry is focused on alleged bribery tied to a city contract, and the FBI and NYPD are also investigating former NYPD officials in a related bribery probe, expanding the scope beyond Carone (FBI and NYPD).
- Separately on Wednesday, June 24, 2026, FBI and NYPD officers executed search warrants at the homes of NYPD Chief of Manhattan South James McCarthy, former Deputy Commissioner Tarik Sheppard and former Chief of Department Jeffrey Maddrey in an investigation that grew out of an inquiry into Maddrey (James McCarthy).
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- On Wednesday, June 24, 2026, former New York City mayoral chief of staff Frank Carone, his brother Anthony Carone, hotel owner Yan Po Zhu and hotel employee Crystal Chen were arraigned in Brooklyn federal court and pleaded not guilty to bribery and related charges.
- Prosecutors allege Frank Carone accepted around $120,000 in bribes from Zhu and Chen, funneled through Anthony Carone’s law firm, in exchange for steering a $6.8 million migrant shelter contract to Zhu’s Queens hotel that city Social Services officials had previously rejected.
- The indictment cites specific text messages, including a September 2022 exchange in which Zhu asked for help obtaining a one‑year contract and thanked Carone as "my big guy," and a December 2023 message from Zhu stating "I asked my partners to pay you for a year" that Carone allegedly deleted after learning he was under investigation.
- Bond was set at varying levels for the four defendants, ranging from $100,000 for Chen to $8 million for Zhu, and Carone also faces an obstruction of justice count tied to the deleted text.
- Separately on June 24, 2026, FBI and NYPD officers executed search warrants at the homes of NYPD Chief of Manhattan South James McCarthy, former Deputy Commissioner Tarik Sheppard and former Chief of Department Jeffrey Maddrey in an unrelated federal bribery investigation that grew out of an inquiry into Maddrey.
- CBS reports on June 24, 2026 that Frank Carone, former chief of staff to ex-New York City Mayor Eric Adams, was arrested in New York City as part of a federal bribery investigation.
- CBS says the FBI and NYPD are also investigating former NYPD officials in a related bribery probe, expanding the known scope beyond Carone alone.
- The piece confirms that the current phase of the investigation is focused on alleged bribery tied to a city contract, consistent with but not yet detailed in public charging documents.