Eric Adams, mayor of New York, exits a weekly news conference at City Hall in New York, US, in 2023. Image: Bloomberg

NYC Mayor was corrupt for years, US claims in scathing case

The charges, unsealed Thursday morning, call into serious question the political future of the man in charge of running the biggest US city. 

by · Moneyweb

New York City Mayor Eric Adams engaged in years of sustained corruption, accepting more than $100 000 in lavish bribes from foreign nationals, the top federal prosecutor in Manhattan claimed in a scalding indictment.

Adams, charged with bribery, conspiracy and breaking campaign finance laws, is accused of secretly accepting illegal contributions to his 2021 campaign and of taking free flight and hotel upgrades and other gifts without disclosing them as required, repeatedly crossing the law’s “bright red lines.”

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The charges, unsealed Thursday morning, call into serious question the political future of the man in charge of running the biggest US city.

“I want to be clear, these upgrades and freebies were not part of some frequent flier program available to the general public,” Damian Williams, the US attorney for the Southern District of New York, said at a news conference after the indictment was unsealed. “This was a multi-year scheme to buy favor with a single New York City politician on the rise, Eric Adams.” He added that “year after year after year,” Adams “kept the public in the dark.”

Adams, who is seeking re-election next year, said at a press conference on Thursday that he will continue to serve as mayor and looks forward to defending himself against the charges.

Adams is set to appear in court Friday, where he’ll be formally charged and will likely enter a plea of not guilty. US District Judge Dale Ho, who’s supervising the case, also set an initial conference for Oct. 4 to discuss planning for the prosecution to go forward.

Federal prosecutors allege that over nearly a decade, dating back to when Adams served as Brooklyn borough president, he accepted improper benefits including luxury international travel from wealthy foreign businesspeople and at least one Turkish government official seeking to gain influence over him.

The prosecutors detailed improper relationships that Adams allegedly had with a Turkish diplomat, including accepting free upgrades and tickets to business class for himself and companions on round-trip flights from New York to China, France, Hungary, India, Sri Lanka and Turkey and discounted hotel stays.

“We continue to dig,” Williams said, suggesting others could be prosecuted. In a nod to the nation’s political polarity, he added: “We are not focused on the right or the left. We are only focused on right and wrong.”

NEW YORK, NEW YORK – 26 SEPTEMBER: NYPD officers patrol Gracie Mansion, the Mayor’s residence in New York City. Image: Michael M. Santiago/Getty Images

The indictment of the 64-year-old Adams, just the second Black mayor in the city’s more than 400-year history, is a remarkable turn for a former police captain who beat a crowded field to win the mayor’s race in 2021, running on a law-and-order platform that pledged to make city government work better.

Adams’ lawyer Alex Spiro said in a statement that “we have known for some time that they would try to find a way to bring a case against Mayor Adams. Yesterday — more improper leaks. Today — they emailed us a summons (and created the spectacle of a bogus raid). And very soon they will no doubt hold an hour-long dog-and-pony show presser rather than appear in open court.”

“Federal judges call them out all the time for spinning in front of the cameras and tainting jurors,” Spiro added. “But they keep doing it because they can’t help themselves, the spotlight is just too exciting. We will see them in court.”

Adams potentially faces decades in prison if convicted of the charges. Wire fraud carries a maximum penalty of 20 years behind bars, accepting a bribe comes with a maximum of a decade, and the other charges top out at five years, according to prosecutors. The government is also seeking to have him forfeit any proceeds that can be traced to the commission of the alleged crimes.

Governor Kathy Hochul has the power to remove Adams, according to the New York City Charter. Hochul said at a news conference that she would address the indictment later on Thursday, calling it “a very serious matter.”

She added that as governor she has a “unique responsibility” to serve all the people of the state, including residents of New York City, and that she would be “deliberative” and “thoughtful” in reaching the right decision.

Manhattan US Attorney Damian Williams at a news conference announcing the charges. Image: Bloomberg

Another route is through a so-called inability committee, which can declare the mayor unable to serve. The panel includes New York City Council Speaker Adrienne Adams as well as Comptroller Brad Lander, who is running against Adams and has called for his resignation.

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On Thursday afternoon Speaker Adams stopped short of directly calling on the mayor to resign but questioned whether he would be able to do his job following the charges.

“There are major questions of how the serious nature of the allegations affects one’s ability to govern,” she said. “I ask the mayor to seriously and honestly consider whether full attention can be given to our deserving New Yorkers who need our government to be sound and stable,” adding that if he stays in office, he has to fulfill his duties “without interruption.”

Should Adams be forced to step down, then New York City Public Advocate Jumaane Williams would immediately become mayor, according to Jerry Goldfeder, an election law expert. He said that if a mayoral vacancy occurs more than 90 days before the primary scheduled for June 24, Williams would then need to call a special election within three days.

The newly constructed Turkish consulate building in New York City, New York, on November 13, 2023. Photographer: Spencer Platt/Getty Images

Adams is accused of exploiting New York City’s unusually generous public matching funds program, which provides $8 in public funds for every $1 raised by donors from New York City, up to a maximum of $250 for candidates seeking citywide office. The indictment alleges that Adams’ campaign applied for those funds based on straw donations, receiving as much as $2,000 in funds for each contribution.

In all, his mayoral campaign received more than $10 million in public funds.

Prosecutors said Adams “repeatedly took steps to shield the solicitation and acceptance of these benefits” and failed to disclose them in his annual financial disclosures, as required for a New York City employee.

Federal agents publicly seized Adams’ mobile devices last November, and although Adams was carrying several mobile devices, he wasn’t carrying his personal cellphone, the indictment said. Prosecutors allege that Adams later handed over his personal cellphone, “which is the device he used to communicate about the conduct” described in the indictment. By that time, he claimed “he had forgotten” the password to unlock it, complicating the FBI’s ability to access the phone’s contents.

The indictment is detailed. Prosecutors claim that during an August 2017 trip, Adams and a relative accepted “a heavily discounted stay” at the St. Regis Hotel in Istanbul, which was owned by a Turkish businesswoman who “sought to ingratiate herself with Adams.” He stayed at the “Bentley Suite” for two nights that should have cost $7,000, but instead the mayor paid $600.

The Turkish official allegedly told Adams in September 2021 it was “his turn” to repay him by pressuring New York City Fire Department officials to enable the opening of a new 36-story Turkish consulate building without a fire inspection ahead of a visit by the Turkish president.

An official at the Turkish embassy in Washington declined to comment on Wednesday.

The case is US v. Adams, 24-cr-566, US District Court, Southern District of New York (Manhattan).

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