Investigations into the Eric Adams administration

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Eric Adams after he was arraigned and pled not guilty Eric Adams - Eric Adams arraignment 2024-09-27 087 (cropped).jpg
Eric Adams after he was arraigned and pled not guilty

There have been several investigations into the Eric Adams administration since he became Mayor of New York City in 2022.

Contents

Chief among these investigations is the ongoing federal prosecution of Eric Adams overseen by the United States Attorney for the Southern District of New York that resulted in the criminal indictment of Adams. This indictment charges Adams with one count of conspiracy to defraud the United States; one count of wire fraud; two counts of soliciting campaign contributions from foreign nationals; and one count of soliciting and accepting a bribe. [1] [2] On October 8, former Adams' Chief Liaison to the Muslim Community Mohamed Bahi, who had resigned the day prior, was arrested and charged with witness tampering and destruction of evidence in connection with Adams' indictment and the investigation of illegal contributions made to Adams’ mayoral campaign. [3] [4]

Law enforcement interest in a wide swath of Adams's City Hall led to a number of unscheduled departures from the administration before Adams' indictment. [5] The New York City Department of Investigation and New York County District Attorney arrested Buildings Commissioner Eric Ulrich in 2022 for an alleged bribery scheme, forcing him to leave the administration. He awaits trial in New York Supreme Court. [6] A set of raids by IRS Criminal Investigation led to the resignation of Police Commissioner Edward Caban. [7] Similar warrant seizures of phones by the Federal Bureau of Investigation preceded the resignation of Schools Chancellor David C. Banks and Deputy Mayor Philip Banks III. [8] [9]

As the charges have mounted, a number of New York City-area elected officials have called for Adams to resign. [10] [11] Under the New York City Charter the New York State Governor holds the power to suspend the Mayor for 30 days and ultimately remove him. [12] Governor Kathy Hochul has so far declined to exercise this right or call for Adams's resignation, saying that, "It's now up to Mayor Adams to show the City that he is able to lead," while under indictment. [13] The charter also contains language to remove a mayor via a never-before-used "inability committee", [14] consisting of the city's corporation counsel, comptroller, council speaker, senior borough president, and one deputy mayor. [15] It would take four votes to start the process of removing the mayor - temporarily or permanently - which he could dispute, [16] and would still need to pass the full council. [17]

Adams calls the charges "entirely false, based on lies", and has vowed to fight the charges. [18] Adams and his defenders maintain the charges are retaliation for his opposing the Biden-Harris administration's handling of the migrant crisis. [19]

But after Donald Trump assumes presidency in Jan 2025, the Justice Department on Jan 29 considers dropping the case against Eric Adams. [20]

Investigations

FBI investigation into Adams travel and campaign fundraising

Background

Dating to the Brooklyn borough presidency, Eric Adams has faced press scrutiny regarding his foreign travel. [21] Adams has boasted in particular of his travel with Turkey, and of having met with Turkish president Recep Tayyip Erdoğan. [22] In August 2015, the consulate-general of Turkey paid for Adams's trip to the country. [23] As mayor, Adams boasts that no other mayor in New York City history had visited the country as often as he had. [24]

In May 2021, employees of the Brooklyn construction firm KSK Construction donated a total of US$14,000 to Adams' mayoral campaign, allowing the campaign to qualify for US$18,000 in public matching funds. According to Politico , of the firm's 11 employees, 10 had not made a prior political donation; co-owner Erden Arkan had last donated to former Brooklyn borough president Marty Markowitz's campaign in 2009. [25] KSK Construction is heavily financed by the Turkish bank VakıfBank, which is controlled by the Turkish state. [26]

After securing the 2021 Democratic mayoral primary nomination in July, Adams urged then-fire-commissioner Daniel A. Nigro to allow the government of Turkey to occupy the Turkish House; the New York City Fire Department declined to sign off on the building, citing fire safety issues. [23]

Investigation

Mayor Eric Adams speaks at a flag raising ceremony in celebration of the 100th Anniversary of the Republic of Turkey on October 27, 2023.

In spring 2023, the Federal Bureau of Investigation (FBI) and the United States Attorney for the Southern District of New York began a corruption investigation into alleged straw donors from the government of Turkey through construction company KSK Construction to the Adams's 2021 campaign. [23] [27]

Eric Adams and Rana Abbasova in October 2023 Rana Abbasova at Flag-Raising Ceremony for Turkiye hosted by Eric Adams.jpg
Eric Adams and Rana Abbasova in October 2023

On November 2, 2023, investigators raided the Brooklyn home of Brianna Suggs, Adams's chief fundraiser. The search warrant, obtained by The New York Times , states agents seized three iPhones, two laptops, contribution card binders, and other documents. [24] The Federal Bureau of Investigation searched a dozen locations that day, [28] including the residence of former Turkish Airlines executive Cenk Öcal and Director of Protocol in the Mayor's Office for International Affairs Rana Abbasova. [29] On November 3, investigators questioned Nigro over the Turkish House. [23] Days after the raid at Suggs's home, the FBI seized at least two of Adams's cellphones and an iPad. Adams's campaign cooperated with the FBI's request. [30]

On April 5, 2024, the Times reported that the FBI was investigating flight upgrades Adams purportedly received on Turkish Airlines flights. [31] In July, investigators served grand jury subpoenas. [32]

In addition to the resignation and seizing of the phone of police commissioner Caban, Adams's counsel and chief legal adviser Lisa Zornberg resigned, as did deputy commissioner of public private partnerships and economic development Kristen Kaufman. [33] Director of Asylum Seeker Operations Molly Schaeffer was also visited by law enforcement, who served a federal subpoena on her. [34] [35] [36]

Reactions

Adams canceled several meetings at the White House to discuss the New York City migrant housing crisis following the raid. At a Day of the Dead celebration at Gracie Mansion that night, Adams stated that his campaign was up to the "highest ethical standards". [24] Adams denied the accusations at New York City Hall press conference the following week, disclosing that he had retained the law firm Wilmer Cutler Pickering Hale and Dorr. [37]

Following a report from The New York Times that Adams was being investigated over the construction of the Turkish House, Adams further denied wrongdoing [38] and assured that he would continue to cooperate with investigators. [39] Adams and the City Hall's chief counsel requested the FBI cease leaks of its investigation. [40]

Brooklyn Democratic Party chairwoman Rodneyse Bichotte Hermelyn questioned whether the inquiry was related to Adams' race. [41] State senator Leroy Comrie called the investigation a witch hunt. [42] Both Bichotte Hermelyn and Comrie have raised funds for Adams's legal defense fund. [43] [ better source needed ]

Representative Brandon Williams accused the investigation of being a "weaponization of the justice system" against Adams' critical comments towards president Joe Biden. New York City Council minority leader Joe Borelli defended Adams on Twitter. [42] The New York Post 's editorial board questioned whether the investigation could be political retribution. Politico compared the rhetoric among Adams's supporters with Donald Trump's supporters. [42]

The Campaign Finance Board rejected, later in the year, Adams' matching funds request for his reelection campaign. The campaign requested $4 million. Board chair Federick Schaffer explained that "the Board has determined there is reason to believe the Adams campaign has engaged in conduct detrimental to the matching funds program, in violation of law, including the Campaign Finance Act and Board Rules." The campaign can appeal the decision, or opt out of receiving matching funds altogether to raise the individual donor cap from $2,100 to $3,700. [44]

NYPD, Caban brothers possible investigation

Edward Caban resigned his role as NYPD Commissioner after having his phone seized by federal agents. Edward Caban 2024.jpeg
Edward Caban resigned his role as NYPD Commissioner after having his phone seized by federal agents.

In early September 2024, federal agents, at the direction of the office of the U.S. Attorney for the Southern District of New York, seized the phone of New York City Police Commissioner Edward Caban. The probe focuses on nightclub protection services owned by Caban's twin brother, James Caban, who was fired from the NYPD in 2001 and also had his phone seized. [45] Edward Caban resigned on September 12, at the request of the Adams administration. [46] According to Caban's lawyers, he has been told he is not a subject of investigation. [7]

Banks brothers bribery and corruption investigation

The office of the U.S. Attorney for the Southern District of New York is investigating a possible bribery scheme focusing on the consulting firm Pearl Alliance. The firm was founded by Terence Banks, the brother of Philip Banks III, deputy mayor of New York City for public safety, and David C. Banks, the New York City schools chancellor. Philip and David each oversaw public agencies that tendered contracts with clients of the Pearl Alliance. All three brothers had their phones seized. [8] [45]

In September 2024, search warrants were served to employees of SaferWatch–also a client company of The Pearl Alliance–in relation to the possible corruption investigation. [47] The New York City Police Department paid SaferWatch more than $67,000 since August 2023 for "school safety" services. [48]

Under a cloud, Chancellor David C. Banks and Deputy Mayor Philip Banks III each resigned in the month of October 2024. David C. Banks tried to have his resignation at a later date, but said that Adams had "accelerated" the timeline of his resignation. [49] [9]

Winnie Greco investigation

On February 29, 2024, the FBI searched New World Mall and two houses owned by Winnie Greco, Adams's Asian affairs advisor and a close aide of the mayor. [50] [51] Greco was also a prominent fundraiser for Adams's 2021 mayoral campaign. Greco reportedly raised money by via straw donors through a non-profit called the Alliance of Asian American Friends. [52] The investigation is being conducted by the United States Attorney for the Eastern District of New York. [45]

City leases investigation

The Manhattan district attorney's office opened a further corruption investigation on October 9 on the city corruptly leasing commercial property. According to a source in the New York Times, the focus is on possible bribery and money laundering, among other possible crimes. [53]

The Southern District of New York served a grand jury subpoena to Ingrid Lewis-Martin, chief advisor to Adams since 2022, and took her phone as she returned to New York from a trip to Japan. She was accompanied by fellow Adams administration member and attorney Jesse Hamilton and Cushman & Wakefield real estate broker Diana Boutross, whose phones were also seized at the airport by the New York County District Attorney. [54] [55] [53] Friends of Lewis-Martin and Boutross describe them to the Times as close friends of each other. [53] At the same time, Lewis-Martin's home in Brooklyn was also searched. [53] State investigators tied to the New York County District Attorney were present at both scenes. [56] [57]

Other phone seizures

Timothy Pearson, a retired police inspector, Adams' former supervisor in the NYPD, and senior advisor and one his aides and confidants, had his phone seized by federal agents. It's unclear what investigation Pearson's phone seizure relates to. [8] [58]

The phone of Sheena Wright, the NYC deputy mayor and fiancé of David Banks, was also seized. [8]

Indictment

United States v. Adams
NewYork-southern.gif
Seal of the U.S. District Court for the Southern District of New York
Court United States District Court for the Southern District of New York
Full case name United States of America v. Eric Adams
Docket nos. 24-cr-556
Charge
Court membership
Judge sitting Dale Ho (District Judge) [59]
The US Attorney for the Southern District of NY holds a press conference detailing the charges against Adams on September 26, 2024. Speaking are US Attorney Damian Williams, FBI Assistant Director in Charge James Dennehy, and NYC Department of Investigation Commissioner Jocelyn Strauber.
Police outside Gracie Mansion on the day of Adams' arraignment Police outside Gracie Mansion (74983).jpg
Police outside Gracie Mansion on the day of Adams' arraignment

On September 25, 2024, The New York Times reported Adams had been indicted by a grand jury on federal criminal charges. [60] The following morning, FBI agents entered his official residence at Gracie Mansion and seized his phone. [61] On September 26, the case against Adams was assigned, unsealing the indictment and revealing that the charges against him, which are as follows:

Damian Williams, the U.S. attorney in Manhattan, claimed that Adams took over $100,000 in bribes from Turkey in exchange for using his powers to help open the Turkevi Center. These bribes mostly took the form of free and discounted luxury travel benefits. These benefits included free hotel rooms, free meals at high-end restaurants, free entertainment while in Turkey, free and heavily discounted flights, and similarly free and discounted flight class upgrades. [63] In exchange for these perks, Adams pressured the New York City Fire Department to approve the opening of a new Turkish consular building without a fire inspection. The indictment claims that the building would have failed the fire inspection, and that the FDNY official responsible for the building assessment was told he would lose his job if he did not allow the building to open. [64]

The indictment alleges Adams deliberately omitted the gifts' value from his annual New York City Conflicts of Interest Board disclosures, and notes communications suggestive of a cover-up. The indictment also alleges that Adams and his Turkish contacts conspired to hide the ultimate source of campaign contributions through an illegal straw donor scheme that defrauded the matching funds of the New York City Campaign Finance Board. [1] The indictment also notes that Turkish officials pressed a staffer for assurances that Adams would boycott 2022 commemorations of the Armenian Genocide Remembrance Day, in line with Turkey's official policy of Armenian genocide denial, and that Adams appeared to comply with the request. [65]

Adams is the first sitting mayor of New York City to have been indicted on federal crimes and pleaded not guilty on September 27. [66] [67]

Continued investigations

Investigations into the Adams administration continued after his indictment.

Ingrid Lewis-Martin, a chief advisor, was issued a grand jury subpoena on September 27 by the US Attorney's Office relating to the Adams case. [53] On December 15, 2024, Lewis-Martin resigned from her position as chief adviser, with the mayor's office framing her departure as a "planned retirement." Lewis-Martin's departure followed a high-profile legal inquiry into allegations that she had accepted improper gifts during her time in office. She has publicly denied these accusations, stating that she "never took any gifts, money, or anything" while in her role and had not made arrangements for others to receive benefits on her behalf.

The investigation into Lewis-Martin intensified in late September 2024, when prosecutors from the Manhattan District Attorney's Office searched her home and seized her personal phones. Upon returning from a flight from Japan, she was met at the airport by both federal and Manhattan prosecutors. The investigation involves a grand jury, which invited Lewis-Martin to testify, but she declined. Her lawyer, Arthur Aidala, asserted that the investigation was politically motivated and that the grand jury's decision was predetermined. [68]

The New York City Department of Investigation raided Queens offices of the New York City Sheriff's Office. Reports indicate the raid was seeking cash and records kept by the Sheriff's Office, part of controversies surrounding chain of custody following the Sheriff's closure of unlicensed cannabis dispensaries. [69] [70]

FBI agents also served warrants at 375 Pearl Street where Adams associates Philip Banks III and Timothy Pearson keep offices. [71]

Mohamed Bahi exiting federal court after arraignment Mohamed Bahi (Bahe) Exiting Federal Court.jpg
Mohamed Bahi exiting federal court after arraignment

On October 8, 2024, Mohamed Bahi, Mayor Adams' Chief Liaison to the Muslim community, who was believed to have played a prominent role in encouraging witnesses to lie and destroying incriminating evidence in connection with illegal contributions made to Adams’ mayoral campaign, was arrested and charged with witness tampering and destruction of evidence. [3] [4]

Bahi was charged the day after he resigned as the Adams administration's chief liaison to the Muslim community. [3] [4] The same day, Bahi was arraigned in Manhattan federal court, where his bail was set at $250,000. [4] Bahi would not enter a plea during his arraignment. [4] He faces up to 20 years of prison time on each count. [72]

Responses to the indictment

There have been several responses to the investigation and indictment of Adams, dividing on the questions of whether the charges are fair and whether Adams should remain in office while awaiting trial.

If Adams resigns, the acting mayor would be Jumaane Williams, the NYC public advocate. [73] Williams would be required to hold an election within 80 days. [74] New York Governor Kathy Hochul is the only New York official who could unilaterally suspend and remove Adams. [74] On September 26, 2024, Hochul called the indictment "the latest in a disturbing pattern of events," but stopped well short of demanding a resignation, saying that "it's now up to Mayor Adams to show the City that he is able to lead." [75]

Adams has stated that he does not plan to resign. [76]

Public opinion

A Marist College poll conducted from September 30 to October 1, 2024, of 1,073 registered voters in New York City found that 65% of respondents believed Adams had committed illegal acts, and 70% wanted him to resign; if he doesn't resign, 63% wanted Hochul to remove him. [77]

Statements of support for Adams

Kathy Hochul Kathy Hochul March 2024.jpg
Kathy Hochul
Joe Borelli Joe Borelli 2023.jpeg
Joe Borelli

Months ahead of his indictment, Adams named a number of his allies as fundraisers for of his legal defense fund. [43] [ better source needed ] These allies have given Adams quotes in support after the indictment as well:

Politico compared the rhetoric among Adams' supporters with Donald Trump's supporters, and noted the support of Republicans for Adams:

Tablet editor-in-chief Liel Leibovitz opined that Jews should stand with Adams, "a hero to Jews and New Yorkers" for his "zero-tolerance approach to the Hamasniks in our streets." [85]

National Action Network founder Al Sharpton told the press, "I have known Eric Adams for 35 years. I’ve never known him to have any leanings towards criminality. He [deserves] due process." He also counseled Hochul against the use of her constitutional power to remove Adams. [86]

Calls for Adams' resignation

The New York Times editorial board ran the opinion article "Eric Adams Should Resign." [87] The Staten Island Advance editorial of September 27 pressed for Adams's resignation, saying "We can’t see Eric Adams focusing much on city business over the months he’ll be dealing with the charges if he remains in office." [88]

Nydia Velazquez Nydia Velazquez official portrait.jpg
Nydia Velázquez

A number of elected officials, political groups, and other notable individuals called for Adams to resign, especially following his indictment, including:

United States Congress

New York State Senators

Jabari Brisport (12-28-20) Newly Elected NYS Senator Jabari Brisport (cropped).jpg
Jabari Brisport

New York State Assembly Members

Phara Souffrant Forrest Phara Souffrant Forrest, June 18, 2020.jpg
Phara Souffrant Forrest

City-wide Office

Borough Presidents

New York City Council Members

Other notable figures and organizations

*Declared candidacy in the upcoming 2025 New York City mayoral election.

City officials' resignations

Philip Banks III Banks2023.jpg
Philip Banks III
Sheena Wright Sheena Wright First Deputy Mayor Makes Announcement at Beastie Boys Mural (cropped).jpg
Sheena Wright

A number of city officials from Adams' own administration have resigned, including:

See also

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References

  1. 1 2 "Southern District of New York | New York City Mayor Eric Adams Charged With Bribery And Campaign Finance Offenses | United States Department of Justice". www.justice.gov. United States Department of Justice. September 26, 2024. Retrieved September 28, 2024.
  2. ↑ Rashbaum, William; Rubinstein, Dana; Rothfeld, Michael; Haag, Matthew (September 25, 2024). "Eric Adams Is Indicted in New York". The New York Times . Retrieved September 25, 2024.
  3. 1 2 3 Rashbaum, William K.; Rothfeld, Michael; Rubinstein, Dana; Pallaro, Bianca (October 8, 2024). "City Hall Official Charged With Witness Tampering in Adams Inquiry". The New York Times . Retrieved October 8, 2024.
  4. 1 2 3 4 5 Sommerfeldt, Chris; Crane-Newman, Molly; Stratman, Josephine (October 8, 2024). "Former Adams aide Mohamed Bahi charged in NYC City Hall federal corruption investigation". New York Daily News . Retrieved October 8, 2024.
  5. 1 2 3 4 Fadulu, Lola (September 26, 2024). "These Are the N.Y.C. Officials Who Resigned Ahead of the Adams Indictment". The New York Times . Retrieved September 27, 2024.
  6. ↑ Offenhartz, Jake (September 13, 2023). "Former NYC buildings commissioner accused of trading favors for cash, Mets tickets and more". Associated Press . Retrieved September 28, 2024.
  7. 1 2 Ngo, Emily (September 12, 2024). "Top cop bounces, political left pounces". Politico . Retrieved September 26, 2024.
  8. 1 2 3 4 Rubinstein, Dana; Rashbaum, William K.; Harris, Amy Julia; Pallaro, Bianca; Rothfeld, Michael (September 10, 2024). "Firm Run by Brother of Top N.Y.C. Officials Is Focus of Bribery Inquiry". The New York Times . Retrieved September 26, 2024.
  9. 1 2 3 "Deputy mayor of public safety resigns, Adams says". NY1 . Retrieved October 7, 2024.
  10. ↑ Honan, Katie; Smith, Greg B.; Hogan, Gwynne (September 25, 2024). "Mayor Eric Adams Indicted by Federal Prosecutors". The City . Retrieved September 25, 2024.
  11. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Mendez, Rich; Donaldson, Sahalie; Pretsky, Holly; Sterne, Peter. "Eric Adams has been indicted. Who is calling on him to resign?". City & State.
  12. ↑ "Section 9. Removal of mayor". American Legal Publishing. Retrieved September 29, 2024.
  13. ↑ "Statement from Governor Kathy Hochul | Governor Kathy Hochul". www.governor.ny.gov. Retrieved September 29, 2024.
  14. ↑ Tecotzky, Alice; Lee, Lloyd. "What it would take to remove embattled New York City Mayor Eric Adams from office". Business Insider . Retrieved October 2, 2024.
  15. ↑ Krichevsky, Sophie; Bunay, Angela (September 26, 2024). "No NYC mayor has resigned in decades. But here's what would happen if they did". City & State NY. Retrieved October 2, 2024.
  16. ↑ Russo-Lennon, Barbara; Pozarycki, Robert (September 26, 2024). "Mayor Adams indictment: What happens if he chooses to resign – or is removed from office?". AM New York Metro . Retrieved October 2, 2024. members of the city government could also form an ad-hoc "inability committee" to remove the mayor… five members: the city's corporation council, comptroller, speaker of the city council, the borough president with the longest term in office — and even a deputy mayor appointed by the mayor himself… those members would be Lander, Queens Borough President Donovan Richards, Speaker Adrienne Adams… city does have an acting corporation counsel, who has the full powers of the office… Experts say the city charter's provisions are unclear on what constitutes inability or whether a mayor under indictment meets such a definition.
  17. ↑ Kim, Elizabeth; Brand, David (September 26, 2024). "What happens if Mayor Adams resigns – or refuses to leave City Hall?". Gothamist . Retrieved October 2, 2024.
  18. ↑ Cohen, Luc (September 26, 2024). "New York Mayor Adams faces criminal indictment, vows to fight charges". Reuters . Retrieved September 27, 2024.
  19. ↑ Lemire, Jonathan; Stokols, Eli (September 26, 2024). "Joe Biden cut ties with Eric Adams two years ago". Politico . Retrieved September 27, 2024.
  20. ↑ "Justice Dept. is said to discuss dropping case against Eric Adams".NYTimes, Jan 29, 2025
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  22. ↑ Fitzsimmons, Emma (November 14, 2023). "Eric Adams's Turkey Ties: Travel, Donations and a Meeting With Erdogan". The New York Times . Archived from the original on November 14, 2023. Retrieved November 14, 2023.
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