Federal prosecutors indicted Frank Carone, a former chief of staff to New York City Mayor Eric Adams, on Wednesday, alleging he accepted bribes in connection with the city’s efforts to house an influx of migrants. The charges stem from an alleged scheme to secure a lucrative city contract for a Queens hotel amid the migrant crisis.
Carone, a prominent Democratic political figure and lawyer, was accused of accepting approximately $120,000 in bribes in exchange for steering a contract worth $6.8 million to Microtel, a 75-room hotel in Queens. Prosecutors said the arrangement took place in 2022 and 2023, during which New York City was contracting local hotels to provide temporary shelter as part of its legal obligation to house migrants arriving in the city.
Alongside Frank Carone, federal authorities arrested his brother Anthony Carone, the owner of Microtel, and the hotel’s business manager. All four defendants pleaded not guilty at a federal court hearing in Brooklyn and were released on bond.
According to the indictment, after Microtel’s initial bid was rejected, Frank Carone intervened, resulting in the hotel securing the sizeable shelter contract. The bribe payments were allegedly funneled through a law firm account controlled by Anthony Carone to conceal their origin. Prosecutors said Anthony Carone then used those funds to pay portions of Frank Carone’s personal expenses, including credit card bills for groceries, clothing, dining, and fitness memberships, as well as transferring some money into a separate law firm account.
Carone’s lawyers rejected the allegations, stating he played a crucial role in managing the city’s unprecedented migrant crisis but was not involved in awarding the Microtel contract. They emphasized that he intended to clear his name. Attempts to reach Anthony Carone’s legal representative were unsuccessful.
Frank Carone served as chief of staff to Mayor Adams in 2022 and now runs the consulting firm Oaktree Solutions. The indictment comes amid broader scrutiny of members of Adams’s administration, several of whom have been embroiled in federal and state corruption investigations, resulting in some resignations. In 2024, Adams himself was indicted on bribery and campaign finance charges during his re-election campaign, although the Justice Department later sought to dismiss the case, citing its impact on the mayor’s ability to address immigration issues. Adams withdrew from the mayoral race afterward.
The former mayor commented on Wednesday that Carone had helped various individuals, businesses, and charities throughout his legal and public service career and offered prayers for his family amid the ongoing legal proceedings.