[Daily Mail, where America gets its news] A top advisor to former New York City mayor Eric Adams was arrested on Wednesday morning by federal agents in a massive corruption probe.
Frank Carone, 56, was taken into custody on federal corruption charges in connection with a bribery scheme at his $2 million home.
Carone served as the first chief of staff in Adams' administration before he left to start a lobbying firm.
A federal indictment unsealed on Wednesday charged Carone, his brother Anthony and two other individuals with conspiracy, two counts of bribery, use of interstate facilities to commit bribery, wire fraud and money laundering.
They were indicted at a Brooklyn courthouse and released on bond. Carone's bond was set at $2 million, while his brother was released on a $500,000 bond.
The Carone brothers were also charged with obstruction of justice and filing a false tax return.
Prosecutors have alleged that Carone accepted a series of bribes from a Queens hotel owner, Yan Po Zhu, and Zhu's employee, Crystal Chen. The contract was awarded to the hotel in 2022 to house migrants.
Zhu and Chen were also released on bond. Zhu was given an $8 million bond and electronic monitoring, while Chen's bond was set at $100,000.
Prosecutors have alleged that Carone was paid around $120,000 in total by Zhu and Che for the emergency shelter contract.
The money was passed through a law firm owned by his brother, according to the indictment. Anthony was also arrested at his home on Wednesday.
The alleged bribery scheme transpired during a time when New York City experienced an influx of migrant asylum seekers.
City government worked with hotels to secure 'Emergency Shelter Contracts' to combat the lack of housing for those in need.
Prosecutors said that the Carone brothers, Zhu and Chen 'devised and executed a scheme to exploit the City's migrant crisis for profit.'
The four allegedly entered into a 'multimillion-dollar Emergency Shelter Contract' involving Zhu's hotel, the Microtel in Long Island City.
Zhu and Chen had initially failed to secure the contract after hiring a consultant. Prosecutors cited a June 14, 2022, meeting in which the Department of Social Services said its hotel was not an option because there were already enough shelter contracts in Long Island City.
Zhu then allegedly 'leveraged his burgeoning personal relationship' with Carone to secure the contract.
Prosecutors included photos of the two together at Zhu's Long Island residence on June 3, 2022, alleging that the plan was brokered that evening.
Three days later, Zhu allegedly messaged Carone, asking whom he sh6ould contact for approval of his hotel for the shelter program, to which Carone responded, 'Ok standby.'
Prosecutors argued that photos showing Zhu and Carone together, along with text messages about the contract, revealed the alleged bribery scheme. Microtel received a $6.8 million contract in the fall of 2022. Prosecutors alleged that Zhu and Chen then started making bribe payments to Carone.
The Carone brothers are accused of using the bribe payments for personal expenses such as 'travel, dining, fitness memberships, clothing purchases, groceries, and the like,' according to the indictment.
Allegations of federal corruption against Carone were first reported on earlier this year. He denied any wrongdoing at the time, claiming that the investigation was founded on 'baseless accusations' and 'stereotypical accusations.'
Arthur Aidala, a lawyer for Carone, told Politico that he had been aware of the federal investigation.
'Frank Carone was part of an administration that publicly challenged what it viewed as the previous White House's dangerous immigration policies and their harmful impact on New York City,' Aidala said.
'Three years ago, after speaking out on these issues, Mr. Carone was notified that he was under investigation by federal authorities.'
'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.'
Carone has a long history in New York City politics. He served as a counsel to the Democratic Party and was a close ally of Adams during his political career. Carone helped mentor Adams, supporting the former mayor's rise from Brooklyn borough president to his controversial tenure in City Hall.
Todd Shapiro, a spokesperson for Adams, told Politico that the issue was an 'ongoing legal matter' adding that Carone 'has dedicated decades of his life to public service, the legal profession and helping countless individuals, businesses and charitable organizations throughout New York.'
The Daily Mail has reached out to Carone's lawyer for further comment. Contact information for Zhu and Yan's attorneys was not immediately available.
Federal agents also searched the homes of current and former New York Police Department leaders as part of a bribery investigation, sources close to the investigation told the Associated Press. The FBI and the NYPD executed warrants on the home of NYPD Chief of Manhattan South James McCarthy and former Deputy Commissioner Tarik Sheppard, two officials under the Adams investigation, according to the AP's anonymous source.
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