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NYC Mayor Eric Adams Indicted After Federal Corruption Probe

NYC Mayor Eric Adams Indicted After Federal Corruption Probe
New York City Mayor Eric Adams has been indicted following a federal corruption investigation, according to a person familiar with the matter, a stunning development that calls into question the political future of the man in charge of running the biggest

(Bloomberg) -- New York City Mayor Eric Adams has been indicted following a federal corruption investigation, according to people familiar with the matter, calling into question the political future of the man in charge of running the biggest US city.

The indictment of 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 New York City mayor’s race in 2021 — running on a law and order platform that pledged to make city government work better. 

The widening investigations of City Hall first became public when FBI agents raided the home of an Adams campaign fundraiser last November. The probes accelerated in recent weeks, prompting the mayor’s chief counsel and police commissioner to quit this month. Two former fire department officials were charged with bribery.

The indictment is sealed and it’s not yet clear what charge or charges Adams will face, said the people, who asked not to be identified speaking publicly without authorization.

Adams Vows Fight

On Wednesday, after news of his indictment was made public, Adams, 64, vowed to remain in office and to fight any charges he might face. Lawyers for Adams have previously said their own investigation showed no evidence of illegal conduct by the mayor. 

Several mayoral administrations in modern history have faced investigations, but Adams’ situation is unusual because of the scope of the probes and the people involved, said George Arzt, a political consultant who served as former Mayor Ed Koch’s press secretary. 

“Every administration goes through down moments. What’s different about this is the hierarchy of the administration involved,” Arzt said. “It’s the proximity to the seat of power that is different about these stories,” he added. 

One investigation, being conducted by the Manhattan US Attorney’s office, had sought information about whether the Adams campaign coordinated with the Turkish government to take illegal donations, and whether the mayor pressured city fire department officials to approve permits for a Turkish consulate building despite safety concerns, according to the New York Times.

Second Investigation

A second federal investigation became public in February, when federal agents searched homes owned by Winnie Greco, a prominent Adams fundraiser, and a mall in Flushing, Queens, where she held campaign events. The City, a nonprofit news website, reported that donors to the Adams campaign who worked at the mall were reimbursed for their donations or were unaware of contributions made in their names. Greco has separately been investigated by New York City’s Department of Investigation following reports of ethical improprieties, The City reported. 

Scrutiny of Adams — who is seeking re-election — and his administration has rapidly accelerated since Sept. 4, when federal agents targeted senior officials. First Deputy Mayor Sheena Wright, City Schools Chancellor David Banks, Deputy Mayor for Public Safety Philip Banks, and Police Commissioner Edward Caban had their homes searched or cell phones seized. Those searches were connected to two additional investigations being conducted by the Manhattan US Attorney’s Office. 

After his home was searched, Caban resigned, saying the investigation had become a distraction. Banks announced plans to resign at year-end, and Lisa Zornberg, chief counsel to the mayor’s office, abruptly quit on Sept. 14.

Adams has insisted the investigations aren’t a distraction. 

“Now, if I am charged, many may say I should resign because I cannot manage the city while fighting the case. I can also understand how everyday New Yorkers would be concerned that I cannot do my job while I face accusations,” Adams said in a video message released by his office late Wednesday.

‘Make No Mistake’

“But I have been facing these lies for months, since I began to speak out for all of you and their investigation started — yet the city has continued to improve. Make no mistake: you elected me to lead this city — and lead it I will,” he added. 

But the depth and breadth of the probes surrounding him and his top aides and the drumbeat of negative press stories are ratcheting up demands that Adams quit. 

On Wednesday, US Representative Alexandria Ocasio-Cortez called on Adams to resign, becoming the most prominent Democrat to do so.

Former city comptroller Scott Stringer and Brooklyn State Senator Zellnor Myrie, two Democrats who are challenging Adams in the June 2025 mayoral primary, also called on Adams to step down.

‘Enormous Challenges’

“We need a leader who is fully focused, without distraction, on the enormous challenges we face — from housing affordability to public safety,” Myrie said. “A mayor under the weight of a serious indictment can no longer do that — and today I am calling on him to resign.”

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

Adams could also be removed from office by Governor Kathy Hochul upon formal charges, with a chance to defend himself, and can be suspended for up to 30 days during the process, according to the New York City Charter. A spokesperson for Hochul didn’t immediately respond to a request for comment.

Alternatively, a so-called inability committee, which includes Comptroller Brad Lander — who is running against Adams and has called for his resignation — can declare the mayor unable to serve. The committee also includes the vacant position of corporation counsel, Council Speaker Adrienne Adams, a designated deputy mayor, and Queens Borough President Donovan Richards, who serves due to being the longest-serving borough president. Four of the five members must agree to take action.

Covid Pandemic

The indictment could imperil a mayoralty that has already faced extraordinary challenges. Adams took office in January 2022 as the city was reeling from the effects of the Covid-19 pandemic, which killed thousands of New Yorkers and cost thousands of jobs amid government-mandated shutdowns. 

Other difficulties he’s faced were unforeseen, including the arrival of more than 200,000 migrants since the spring of 2022, a logistical and financial challenge that Adams said was so burdensome that it could “destroy” the city. 

Three years into his first term, Adams has been able to claim progress on some issues — major felony crimes declined this year compared to last, though they are still up compared to pre-pandemic trends.

Significant Problems

But there continue to be significant problems, across a huge number of city agencies. By some measures, the city has gotten worse under his leadership. 

Nearly five years after the pandemic began, New York City schools continue to struggle with chronic absenteeism, with about 35% of students missing 10% or more of the school year. Police response times have sharply increased, taking nearly five minutes longer than in 2020.

And on Wednesday, in an extraordinary sign of the problems besieging the Adams administration, city officials found themselves in federal court trying to stave off management of the city’s jail system being taken out of their control.

The Adams case is being handled by the office of Manhattan US Attorney Damian Williams, who has overseen several public corruption prosecutions since he was appointed in 2021. Most recently, his office won the conviction of New Jersey Senator Bob Menendez for accepting bribes in exchange for political favors and acting as a foreign agent for Egypt.

In an interview Wednesday before news of the indictment became public, Norman Siegel, a civil rights attorney who is one of Adams’ oldest friends, expressed concern for his friend, who Siegel said had never seemed to care about money, and who prized loyalty among his associates, even, sometimes, to his detriment. 

“It’s painful to see what’s happening,” Siegel said. 

--With assistance from Ava Benny-Morrison, Derek Wallbank, Michael Sin, Aradhana Aravindan and Nacha Cattan.

©2024 Bloomberg L.P.

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