A top aide to former New York City Mayor Eric Adams and three others have been indicted on charges including bribery, wire fraud, and obstruction of justice in connection with the allocation of emergency migrant housing funds to a Queens hotel.

Frank Carone, who served as Adams’s chief of staff for much of 2022 before leaving to establish the consulting firm Oaktree Solutions, was accused of participating in a scheme to direct a $6.83 million federal emergency shelter contract to the owner of a Microtel Inn by Wyndham in Queens. The contract was part of a federal grant designed to lease hotels long-term to house migrant asylum seekers amid a growing influx in the city.

According to a federal indictment unsealed Wednesday in Brooklyn, Carone received $120,000 from the hotel’s owner and business manager through a law firm tied to Carone’s brother, Anthony Carone. The indictment states that the money was funneled via the firm’s bank account, mixed with other client payments, and used to cover Frank Carone’s personal expenses, including his credit card.

Authorities allege that Zhu Yan Po and Crystal Chen, associated with the hotel, initially sought but were denied emergency shelter contracts in early 2022 due to the presence of other contracted hotels in the area and local opposition. The indictment claims Zhu leveraged a close relationship with Frank Carone to circumvent these rejections. Carone, in his role as chief of staff, reportedly instructed the commissioner of the New York City Department of Social Services to reconsider appointing Zhu’s hotel for the grant funding. After several months, the hotel was awarded the contract.

Michael Considine, assistant U.S. attorney for the Eastern District of New York, stated that the defendants exploited the unprecedented migrant crisis for personal financial gain.

Carone’s defense attorneys have rejected the allegations, characterizing the charges as “utterly misguided.” Lawyers Andrew Goldstein and Russell Capone emphasized Carone’s role in aiding the city’s response to the migrant crisis, asserting that he had no involvement in awarding the shelter contract referenced in the indictment. Attorney Arthur Aidala, also representing Carone, expressed confidence in a swift acquittal following a jury trial.

Neither attorneys for Anthony Carone nor for defendants Zhu and Chen responded immediately to requests for comment.

New York City’s “right to shelter” law obligates the city to provide shelter to all homeless individuals who seek it. The surge in asylum seekers in 2022 prompted city officials to contract hotels to rapidly increase shelter capacity, creating the context for the contracts at the center of the indictment. The legal proceedings underscore ongoing scrutiny of emergency migrant housing programs amid the city’s broader efforts to manage a growing humanitarian challenge.