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Former Eric Adams Top Adviser Frank Carone Arrested in Alleged Bribery Scheme Involving Homeless Shelter Contracts

Brooklyn federal prosecutors unseal indictment against Carone and his brother as FBI raids ex-NYPD officials including former Chief of Department Jeffrey Maddrey

Frank Carone, who served as former New York City Mayor Eric Adams' chief of staff during his first year in office, was arrested Wednesday morning and charged in an alleged bribery scheme involving homeless shelter contracts, according to law enforcement sources.

Background

Carone, a longtime political power broker in Brooklyn Democratic circles, had been under federal scrutiny for months. His home was searched by investigators in a pre-dawn operation Wednesday before his arrest, sources said. The former adviser previously faced questions about his financial dealings connected to a Brooklyn church and Monsignor Jamie Gigantiello, with federal prosecutors issuing subpoenas related to the church's finances in 2024.

The corruption probe marks another chapter in a series of investigations that have shadowed Adams' administration since he took office. While mayor, Adams himself was previously indicted on charges alleging he received $120,000 in travel perks in exchange for rushing approval of a Turkish Consulate opening in Manhattan—a case the Department of Justice dropped in 2025.

The Investigation

According to sources, Carone allegedly received a bribe connected to a homeless shelter contract with a Queens hotel operated by Yan Po Zhu. The payments were funneled through his brother, Anthony Carrone, who was also arrested in connection with the scheme, authorities said. Zhu and his employee Crystal Chen were additionally taken into custody.

The indictment is expected to be unsealed Wednesday afternoon in Brooklyn federal court. The U.S. Attorney's Office for the Eastern District of New York is handling the prosecution.

Separately, investigators executed search warrants at the homes of several former high-ranking NYPD officials as part of an ongoing probe. Those targeted include former Chief of Department Jeffrey Maddrey, Assistant Chief James McCarthy, and former department spokesperson Tarik Sheppard.

The NYPD investigation centers on allegations that Maddrey misappropriated funds while serving as chief of department. The case expanded when the FBI was called in to assist. Investigators are examining potential bribery and official misconduct, including whether promotions and assignments were improperly traded for favors.

"This morning, members of the NYPD's Internal Affairs Bureau and the FBI executed search warrants as part of a criminal investigation being pursued by the NYPD, the FBI, and the U.S. Attorney's Office for the Southern District of New York," said Police Commissioner Jessica Tisch in a statement. "The investigation is ongoing and concerns conduct by former and current members of the NYPD."

No arrests were expected Wednesday in connection with the NYPD raids. McCarthy has been placed on modified duty, according to the department.

Key Takeaways

- Frank Carone, Adams' former chief of staff, arrested in alleged bribery scheme involving homeless shelter contracts

- His brother Anthony Carrone also charged; both allegedly involved in funneling payments through a Queens hotel owner

- Yan Po Zhu and employee Crystal Chen arrested in same investigation

- NYPD homes raided of ex-Chief of Department Jeffrey Maddrey, Asst. Chief James McCarthy, former spokesperson Tarik Sheppard

- Investigation examining alleged fund misappropriation and potential bribery related to police promotions and assignments

What's Next

The indictment against Carone and his co-defendants is expected to be unsealed Wednesday afternoon in Brooklyn federal court. An arraignment date has not yet been set. The NYPD investigation into the former department officials remains active, with authorities indicating more developments may come as they continue reviewing evidence.

Carone joins a growing list of Adams associates facing criminal charges. Former aide Ingrid Lewis-Martin is awaiting trial on separate bribery allegations, while former city Building Department head Eric Ulrich faces September trial on bribery charges.

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