Overview
- Federal prosecutors unsealed a 13‑count indictment Wednesday that led to the arrests of Frank Carone, his brother Anthony Carone, hotel owner Yan Po Zhu and employee Crystal Chen on charges including bribery, wire fraud, money laundering and obstruction of justice.
- Prosecutors allege Carone used his City Hall role to direct a $6.8 million emergency shelter contract for migrants to a Long Island City hotel and received about $120,000 in payments routed through his brother’s law‑firm account and labeled as legal fees.
- The indictment says the defendants tried to conceal the scheme by backdating loan‑style documents and deleting messages after learning they were under investigation, conduct that supports the obstruction and money‑laundering counts.
- Search warrants executed by the FBI and the NYPD’s Internal Affairs Bureau targeted the homes of current and former NYPD officials in a related line of inquiry, and authorities say the separate probe remains active.
- Defenders call the charges circumstantial and weak but the case, which will proceed in federal court in the Eastern District of New York, adds to a multi‑year probe of contractors and aides tied to the Adams administration and could broaden scrutiny of emergency contracting practices.