Frank Carone Arrested Over $6.8 Million Migrant Shelter Deal as Bribe Case Widens
Updated
Updated · Gothamist · Jun 25
Frank Carone Arrested Over $6.8 Million Migrant Shelter Deal as Bribe Case Widens
3 articles · Updated · Gothamist · Jun 25
Summary
$120,000 in alleged bribes led to Frank Carone’s arrest on federal charges that he steered about $6.8 million in emergency migrant shelter contracts to a Queens hotel after city officials had rejected it.
Prosecutors say the payments from hotel owner Yan Po Zhu and manager Crystal Chen were routed through a bank account run by Carone’s brother Anthony; all four pleaded not guilty.
The case spotlights New York City’s heavy use of no-bid emergency contracts during the 2022-23 migrant surge, which former Comptroller Brad Lander said cost taxpayers tens of millions of dollars.
Carone is one of several Adams allies tied to shelter-contract investigations or charges, including adviser Ingrid Lewis-Martin, while federal prosecutors have also scrutinized Timothy Pearson and shelter provider BHRAGS.