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Public Safety & Justice Active Updated Jul 1, 2026

The migrant-shelter bribery case

Federal prosecutors in the Eastern District of New York have charged Frank Carone, former chief of staff to Mayor Eric Adams, in a bribery scheme tied to New York City's migrant crisis. The 13-count indictment alleges Carone used his City Hall position to steer a $6,825,000 emergency shelter contract to a Long Island City hotel in exchange for roughly $120,000 in payments routed through his brother's law firm. Also charged are Carone's brother Anthony, hotel owner Yan Po Zhu, and Zhu's business manager Crystal Chen. It is the highest-profile prosecution so far in a string of corruption cases arising from the billions in emergency contracts the city awarded to house asylum seekers.

The story so far

  1. Jul 1, 2026 Latest

    At a hearing before U.S. District Judge Kiyo Matsumoto in Brooklyn, Carone's attorney Andrew Goldstein alleged prosecutors were withholding exculpatory evidence. The City Reporter reported that the 27-page indictment identifies former Social Services Commissioner Gary Jenkins, who later worked for Carone's firm Oaktree Solutions, as City Official #1, and alleges Carone directed Jenkins to approve the Microtel as a migrant shelter.

    The City Reporter

  2. Jun 24, 2026

    A 13-count indictment charging fraud, bribery, money laundering, obstruction of justice, and tax fraud was unsealed in Brooklyn federal court. Prosecutors allege Carone used his position as chief of staff to steer an emergency shelter contract worth $6,825,000 to the Microtel Inn in Long Island City, Queens, in exchange for about $120,000 in bribes from Zhu and Chen, routed through a bank account controlled by his brother Anthony's law firm. All four defendants pleaded not guilty before Magistrate Judge Marcia Henry and were released on bail, with Carone held on a $2 million bond and Zhu on an $8 million bond.

    Gothamist The City Reporter

  3. Jun 24, 2026

    The FBI arrested Frank Carone at his Manhattan residence, along with his brother Anthony Carone, hotel owner Yan Po Zhu, and Zhu's employee Crystal Chen. amNewYork reported the four were taken into custody the same morning charges were filed in the Eastern District of New York, with Carone set to be arraigned in Brooklyn federal court that afternoon.

    amNewYork The City Reporter

  4. Dec 22, 2025

    U.S. District Judge Brian Cogan declared a mistrial in the corruption case against Linda Sun, a former aide to Governors Kathy Hochul and Andrew Cuomo charged with illegally acting as an agent of China, after the jury deadlocked on all 19 counts. ABC7 reported that a prosecutor told the court the government wanted to retry the case as soon as possible.

    ABC7 New York

  5. Apr 2, 2025

    U.S. District Judge Dale Ho dismissed the federal corruption case against Mayor Adams with prejudice, meaning it cannot be refiled. The Justice Department had moved on February 10, 2025 to drop the charges, arguing the prosecution interfered with Adams's ability to assist federal immigration enforcement; Ho wrote that everything about the arrangement smacked of a bargain, dismissal of the indictment in exchange for immigration policy concessions.

    City & State New York Wikipedia

  6. Feb 13, 2025

    Federal prosecutors in the Eastern District of New York charged Weihong Hu, an Adams campaign donor and hotel operator, alongside nonprofit executive Julio Medina and businessman Christopher Dantzler in a kickback scheme tied to a COVID-era emergency housing program. ABC7 reported that Hu's hotels received $12 million in public funds and her catering company received $17 million after bribes were paid to the nonprofit that oversaw the program.

    ABC7 New York

  7. Sep 26, 2024

    Manhattan U.S. Attorney Damian Williams unsealed a federal indictment charging Mayor Eric Adams with five counts, including conspiracy, wire fraud, soliciting campaign contributions from foreign nationals, and bribery. Prosecutors alleged Adams accepted more than $100,000 in luxury travel and illegal campaign contributions from Turkish nationals and, in return, pressured the Fire Department to let a Turkish consular building open without a full inspection. Adams pleaded not guilty on September 27, 2024.

    Wikipedia

On the record

The checkable commitments in this fight, tracked until they are kept or broken.

Pending Jun 24, 2026

All four defendants pleaded not guilty to the migrant-shelter bribery indictment and will contest the charges.

Frank Carone, Anthony Carone, Yan Po Zhu, and Crystal Chen (defendants)

Awaiting trial or plea; all four remain free on bail after entering not-guilty pleas before Magistrate Judge Marcia Henry.

GothamistThe City Reporter

Pending Jul 1, 2026

Carone's defense asserts the government possesses exculpatory evidence that contradicts the indictment.

Andrew Goldstein, attorney for Frank Carone

“We have reason to believe that there is exculpatory information in possession of the government”

Unresolved; raised at a July 1, 2026 hearing before Judge Kiyo Matsumoto and awaiting the court's handling of discovery.

The City Reporter

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