Frank Carone once stood at the center of power in New York City government. He served as Mayor Eric Adams’ chief of staff and later stayed on as a top outside adviser. Now he’s fighting federal charges that accuse him of turning the city’s migrant shelter crisis into a personal payday.
On June 24, 2026, the FBI arrested Carone on an indictment out of the Eastern District of New York. The charges include bribery, wire fraud, and money laundering, according to Gothamist and CNN.
The Alleged Scheme
Prosecutors say Carone took roughly $120,000 from Queens hotel owner Yan Po Zhu and a hotel employee, Crystal Chen. The money allegedly moved through a law firm owned by Carone’s brother, Anthony Carone, an attorney who is also charged in the case.
In exchange, prosecutors allege, Carone pressured city officials to steer an emergency migrant-shelter contract to Zhu’s hotel in Long Island City.
That hotel ended up collecting between $6.8 million and $7 million in city payments for housing migrants and homeless individuals during New York’s 2022-2023 shelter crisis, according to the Gothamist report. The city’s Social Services Department had initially rejected the hotel’s application before the contract went through.
Editorial note: As chief of staff, Carone was supposed to be the person making sure emergency contracts went to qualified vendors through legitimate channels during a genuine humanitarian crisis. The indictment alleges he instead helped route a multimillion-dollar no-bid deal to a hotel owner who was paying him directly. That gap between the job he held and the conduct he’s accused of is the core of this case.
Four Defendants, Four Not Guilty Pleas
All four defendants — Frank Carone, Anthony Carone, Yan Po Zhu, and Crystal Chen — have pleaded not guilty. Bail was set as high as $8 million with electronic monitoring for Zhu, and $100,000 for Chen. The Carone brothers were released on bond, per CNN’s coverage.
Trial Pushed, New Defense Lawyer Added
The case was originally set for trial on August 24, 2026. In August, U.S. District Judge Kiyo Matsumoto pushed that date back to May 2027. Defense attorneys for co-defendants told the court they needed more time to review evidence, according to amNY.
Around the same time, Carone added Marc Agnifilo to his legal team. Agnifilo is the same attorney who represented Luigi Mangione.
Dismissal Fight Now Delayed to December
Carone has also moved to dismiss the indictment outright. Oral argument on that motion was set to happen in EDNY, but on October 2, 2026, it was adjourned to December 10, 2026. Anthony Carone’s attorney asked for 45 additional days to review newly disclosed material, according to reporting from Inner City Press.
That same filing notes unresolved disputes over redacted case documents and a backdated promissory note — details that remain contested as the case moves toward December.
What’s at Stake
Each defendant faces up to 20 years in prison on the top charges if convicted. As of early October 2026, no plea deals or convictions have been entered in the case. Carone, his brother, Zhu, and Chen are all still presumed innocent and the case is ongoing.
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