Global Economy

Eric Adams indictment unsealed: New York mayor charged in campaign contribution scheme


NYC Mayor Eric Adams indicted on federal charges in campaign finance case

A federal indictment charging New York City Mayor Eric Adams with a campaign contribution scheme, bribery and other crimes was unsealed Thursday morning, hours after FBI raided his Gracie Mansion residence and seized his phone.

The 57-page indictment accuses Adams of five criminal counts related to contributions to the Democrat’s 2021 mayoral campaign, and other conduct going back as far as 2014, when he was Brooklyn borough president.

Much of the indictment filed in U.S. District Court in Manhattan centers on the Turkish community and Turkish businessmen who allegedly exerted influence on Adams, who is accused of accepting well over $100,000 in foreign travel benefits.

New York City Mayor Eric Adams speaks to the press outside his official residence Gracie Mansion after he was charged with bribery and illegally soliciting a campaign contribution from a foreign national, in New York City, U.S. September 26, 2024. 

Caitlin Ochs | Reuters

The indictment says a “senior official in the Turkish diplomatic establishment” facilitated illegal campaign donations to Adams, and also arranged for the mayor and his companions to receive free or discounted travel on Turkey’s national airline, which is owned in large part by that country’s government, to France, China, Sri Lanka, India, Hungary and Turkey.

In September 2021, the indictment alleges, the Turkish official told Adams “that it was his turn to repay” that official by pressuring the New York City Fire Department to facilitate the opening of a new Turkish consulate building, which is 36-stories-tall, “without a fire inspection, in time for a high-profile visit by Turkey’s president.”

“At the time, the building would have failed an FDNY inspection,” the indictment says.

Adams “did as he was instructed,” and an FDNY official “was told that he would lose his job if he failed to acquiesce,” the indictment says.

The building then opened as requested, according to the indictment.

“I look forward to defending myself and defending the people of this city, as I’ve done throughout my entire professional career,” Adams said outside Gracie Mansion while flanked by supporters, after the indictment was unsealed in U.S. District Court in Manhattan.

The indictment says Adams, a 64-year-old former police captain, received more than $10 million in public matching funds for campaign contributions by using so-called straw donors in the United States to hide the fact that he was accepting foreign campaign contributions.

Download the full indictment.

Starting in 2014, and “Thereafter, for nearly a decade, Adams sought and accepted improper valuable benefits, such as luxury international travel, including from wealthy foreign businesspeople and at least one Turkish governmnent official seeking to gain influence over him,” the indictment says.

“By 2018, Adams — who had by then made known his plans to run for Mayor of New York City — not only accepted, but sought illegal campaign contributions to his 2021 mayoral campaign, as well as other things of value, from foreign nationals. As ADAMS’s prominence and power grew, his foreign-national benefactors sought to cash in on their corrupt relationships with him, particularly when, in 2021, it became clear that Adams would become New York City’s mayor.”

“Adams agreed, providing favorable treatment in exchange for the illicit benefits he received. After his inauguration as Mayor of New York City, ADAMS soon began preparing for his next election, including by planning to solicit more illegal contributions and granting requests from those who supported his 2021 mayoral campaign with such donations.”

Eric Adams indictment pg 41: ERIC ADAMS, the defendant, continued to conceal the luxury travel benefits he
accepted in exchange for taking actions favorable to the Turkish Official, the Airline Manager,
and others, by once again not repmting these gifts on his 2021 annual disclosure form. In total,
from 2016 through 2021, ADAMS received the following benefits from the Turkish Official, the
Airline Manager, the Promoter, and others, none of which he reported on annual disclosure forms:

Source: U.S. Southern District of New York

Adams is charged in the indictment with one count of conspiracy to commit wire fraud, federal program bribery, and to receive campaign contributions by a foreign national.

He also is charged with wire fraud, two counts of solicitation of a contribution by a foreign national, and bribery.

Manhattan U.S. Attorney Damian Williams and a top FBI official, whose offices investigated Adams, are set to hold a news conference “to announce significant public corruption charges” at 11:30 a.m. ET Thursday, Williams’ office said

Adams is at least the second New York mayor to be criminally charged while still in office.

And he is the first official in his administration to be charged as a result of multiple pending investigations that have ensnared the New York Police Department and the city’s top schools’ official.

Adams’ lawyer Alex Spiro, in a statement Thursday morning, said,  “Federal agents appeared this morning at Gracie Mansion in an effort to create a spectacle (again) and take Mayor Adams phone (again).”

“He has not been arrested and looks forward to his day in court,” Spiro said. “They send a dozen agents to pick up a phone when we would have happily turned it in.”

Federal agents search Gracie Mansion, the official residence of the mayor of New York City, on September 26, 2024, after Mayor Eric Adams was indicted on federal criminal charges. 

Timothy A. Clary | Afp | Getty Images

It was previously known the Manhattan U.S. attorney’s office was investigating Adams for potentially conspiring with the government of Turkey to funnel illegal donations into that campaign.

The New York Times on Monday reported that prosecutors had submitted grand jury subpoenas to City Hall, Adams and his campaign in July demanding information related to five other countries: Israel, China, Qatar, South Korea and Uzbekistan.

Adams gave a defiant statement Wednesday night after news of the indictment broke.

“It is now my belief that the federal government intends to charge me with crimes,” Adams said in a video statement. “If so, these charges would be entirely false, based on lies.”

“But they would not be surprising. I always knew that If I stood my ground for all of you that I would be a target — and a target I became.

“If I am charged, I am innocent and I will fight this with every ounce of my strength and spirit,” said Adams, who after working in the Police Department served as a state senator and then Brooklyn borough president.

The U.S. attorney’s office and the FBI declined to comment on the indictment.

Earlier Wednesday, Rep. Alexandria Ocasio-Cortez, D-N.Y., called on the mayor to resign, saying the “flood of resignations and vacancies” resulting from various federal probes of administration officials “are threatening government functions.”

“For the good of the city he should resign,” Ocasio-Cortez said.

After news of the indictment broke, a growing number of elected officials and other political figures in New York also called on Adams to step down, among them city Comptroller Brad Lander and state Sen. Zellnor Myrie, who are both running for mayor next year, and former Comptroller Scott Stringer, who is weighing a run for City Hall.

If Adams resigns before his first term in office ends, he will be succeeded by New York City Public Advocate Jumaane Williams as acting mayor.

Democratic NYC Mayoral candidate Eric Adams raises hands with Jumaane Williams, New York City Public Advocate, and NYC Comptroller candidate Brad Lander during a Get Out the Vote (GOTV) rallyin front of Brooklyn Borough Hall on October 22, 2021 in Downtown Brooklyn in New York City.

Michael M. Santiago | Getty Images

There are multiple federal investigations into Adams and people affiliated with him and his administration.

On Tuesday, city schools Chancellor David Banks told Adams he expected to retire at the end of 2024.

Banks’ surprise announcement came weeks after federal authorities seized electronic devices belonging to him, his brother, Deputy Mayor Phil Banks, and his fiancee, Deputy Mayor Sheena Wright.

Another Banks brother, Terence, is being investigated by the Manhattan U.S. attorney’s office in connection with the allocation of city contacts worth millions of dollars to the companies who received them after hiring Terence Banks’ consulting firm.

Read more CNBC politics coverage

The same prosecutors’ office is probing whether James Caban, the twin brother of former New York Police Commissioner Edward Caban, exploited his ties to his brother and the NYPD to benefit his nightclub security business.

Edward Caban resigned as police commissioner on Sept. 12, a week after his own phone was seized by federal investigators.

Three days after Edward Caban resigned, Adam’s mayoral counsel and chief legal advisor, Lisa Zornberg, resigned, saying she had “concluded that I can no longer serve in my position.”

Last Friday, federal investigators executed search warrants at the homes of Thomas Donlon, the acting NYPD commissioner.

Donlon, who is a former top FBI counterterrorism official in New York, said this week that the investigators “took materials that came into my possession approximately 20 years ago and are unrelated to my work with the New York City Police Department.”

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