Bribes and ‘Clumsy Cover Ups’ Among Allegations Against Eric Adams

Three scenarios are likely to play out — including Public Advocate Jumaane Williams becoming acting mayor or Gov. Kathy Hochul taking a rare move to unseat the mayor — but first, the latest:

The indictment unsealed by the federal government Thursday morning details an alleged straw donor scheme that includes foreign nationals providing favors and funds to Adams through individuals claiming the money was their own and donating to his campaign. Damian Williams, United States attorney for the Southern District of New York, said in a press conference that Adams had created fake paper trails and “clumsy cover-ups.”

The accusations go back all the way to 2014 during his first campaign for Brooklyn borough president, prosecutors said.

“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 [government] official seeking to gain influence over him,” the unsealed indictment read. “By smuggling their contributions to Adams through U.S.-based straw donors, Adams’s overseas contributors defeated federal laws that serve to prevent foreign influence on U.S. elections.”

During the Thursday press conference, under an awning in the rain outside Gracie Mansion, Adams said he would defend himself against the allegations while continuing to run the city.

“This is not surprising to us at all. The actions that have unfolded over the last 10 months, the leaks, the commentary, this did not surprise us that we reached this day, and I ask New Yorkers to wait to hear our defense before making any judgments,” Adams said at the podium. “I know I don’t violate campaign [laws], I know I don’t take money from foreign donors.”

Williams said in a press conference immediately after that his office believes Adams accepted these donations with knowledge of their nature and the legal ramifications.

“Adams directed his staff to pursue this illegal money to support his campaign for mayor, and as we allege, Adams continued to pursue foreign money in secret well into 2021, and it didn’t stop with his first campaign for mayor,” Williams said. “As we allege, in 2023 the mayor rekindled these corrupt relationships, seeking more illegal campaign contributions from some of the same foreign sources to support his re-election campaign.”

Some travel contributions Adams accepted from Turkish nationals were in the form of flights to various countries, through Turkey, and were valued between $12,000 and $41,000, none of which were publicly disclosed, according to the U.S. attorney’s office.

Altogether, his alleged undisclosed travel benefits amounted to about $100,000.

These are three scenarios that could play out for Adams, and New York City, in the coming weeks.

If Adams does resign, the order of succession would hand authority to Public Advocate Williams, and a special election to replace Adams would have to occur within 90 days after Adams stepped down.

While real estate has enjoyed a warm relationship with Adams — who has just won approval from the City Planning Commission for his ambitious plan to change zoning in the city that will ease restrictions for multifamily development — industry members might not feel the same about Williams, as he’s previously been criticized for being unsupportive of tax incentives and development.

Real estate can breathe a sigh of relief as Williams’s powers as acting mayor would be severely limited. Plus, a source in the industry said the City of Yes rezoning will likely survive and is in the hands of CPC Commissioner Daniel Gardonick.

But if Adams refuses to resign, he could be removed by an “inability committee” composed of the corporation counsel, the New York City comptroller (Adams rival Brad Lander), the City Council speaker, a deputy mayor, and the longest-serving borough president, according to Gothamist.

They would then vote to remove the mayor.

Hochul, a close ally of Adams, could also exercise her right under the New York City Charter to remove the mayor from office in the case that the mayor is facing criminal charges. Hochul has not indicated if she would take the rare and bold move to force Adams out of office.

— With additional reporting by Tom Acitelli 

Mark Hallum can be reached at mhallum@commercialobserver.com.