Full Breakdown
Former NYC Mayor’s Chief of Staff Indicted in Federal Bribery Probe
6/24/2026, 10:09:11 PM
Federal Bribery Indictment Targets Former NYC Mayor’s Chief of Staff
On June 24 2026 prosecutors unsealed an indictment charging Frank Carone, his brother Anthony, hotel owner Yan Po Zhu and employee Crystal Chen with conspiracy, bribery, obstruction. They allege Carone steered a $6.8 million migrant-shelter contract to Zhu’s Microtel for $120,000 in bribes funneled through his brother’s law-firm account.
Migrant-Shelter Emergency Contracts Context
In 2022 New York City saw a surge of asylum-seekers after several southern states bused migrants north. The Department of Social Services awarded hotel contracts, funded by $4 billion in federal grants for 2022-2023, to house newcomers.
Timeline of Alleged Scheme
June 2022 – Carone becomes chief of staff; Zhu texts Carone. Sept. 19 2022 – Zhu texts “Thank you my big guy.” Oct. 2022 – Microtel receives $6.8 million contract. Jan 2024 – Grand jury empaneled. June 24 2026 – Indictment and arrests.
Financial Allegations
Zhu and Chen paid $10,000 to Anthony Carone’s law-firm account, totaling $120,000, to secure the $6.8 million shelter contract. The city’s migrant-housing budget for 2022-2023 was about $4 billion.
Concerns Over Relief Funding and Procurement
The case raises concerns about fund use, donor influence—Zhu gave $2,100 to Adams’ 2023 re-election and $2,000 to his 2021 campaign—and procurement integrity during a humanitarian crisis.
Official Statements
Arthur Aidala called the indictment “weak” and “based on purely circumstantial evidence…not worth the paper it’s printed,” adding it “epitomizes the government…spending three years and taxpayer resources to find a crime.” Shapiro said Carone “dedicated decades of public service.” Carone says he acted lawfully.
Criticism & Opposition
Federal prosecutors allege Carone “devised and executed a scheme to exploit the city’s migrant crisis for profit,” citing texts and money flow through a law-firm retainer. A city employee warned the award “meant a loss of 75 units,” showing opposition.
Conflicting Reports & Gaps
Sources differ on the bribe total—some cite “more than $100,000,” others $120,000. The contract’s value is described as $6.8 million, “nearly $7 million,” or “a multimillion-dollar” award. Legal representation for Anthony Carone, Zhu and Chen is unknown.
Verbatim Quotes
- “Today's indictment is a sad day for our criminal justice system,” — Arthur Aidala, attorney for Frank Carone
- “It epitomizes the government first finding a target and then spending three years and enormous taxpayer resources to find a crime.” — Arthur Aidala
- “Thank you my big guy,” — Yan Po Zhu, text to Frank Carone
- “Anyone and everyone who actually knows me and has worked alongside me would say that I am conscientious and principled in how I comport myself and in all that I do.” — Frank Carone
What’s Next
The four defendants will be arraigned in Brooklyn court later June 2026. No trial date is set. Prosecutors say related NYPD probes may continue, potentially widening scrutiny of city contracts awarded during the migrant-housing emergency.
