In a shocking turn of events, a federal indictment has unveiled an alleged bribery scheme that exploited New York’s migrant crisis for personal gain. The indictment, unsealed on June 26, 2026, names four individuals, including former Mayor Eric Adams’ longtime adviser Frank Carone, his brother Anthony Carone, Chinese national Crystal Chen, and hotel owner Yan Po Zhu.
The scheme allegedly involved steering a multimillion-dollar shelter contract to a hotel owned by Zhu in exchange for bribes. The indictment details a complex web of allegations that have sent shockwaves through New York’s political and business communities.
The Alleged Scheme
The indictment alleges that the defendants devised and executed a scheme to exploit the city’s migrant crisis for profit. According to the U.S. attorney’s office for the Eastern District of New York, Frank Carone agreed to steer a multimillion-dollar shelter contract to a hotel owned by Zhu in exchange for approximately $120,000 in bribes from Zhu and Chen. The bribes were allegedly funneled through Anthony Carone via a bank account tied to Frank Carone’s law firm.
The scheme came to light as New York City grappled with an unprecedented influx of migrants seeking asylum. The city, known for its Right to Shelter policy, began renting hotels to accommodate the surge. The indictment reveals that despite objections from city officials, the defendants pushed forward with the controversial contract.
The Key Players
Frank Carone, a longtime adviser and chief-of-staff to former Mayor Eric Adams, is one of the central figures in the alleged scheme. Carone, known for his influential role in Brooklyn politics, has been described as one of Adams’ oldest and closest allies. His brother, Anthony Carone, and Chinese nationals Crystal Chen and Yan Po Zhu are also named in the indictment.
Yan Po Zhu, also known as “Andy Zhu,” is a prominent figure in the New York Chinese business community. Zhu, who immigrated to the U.S. from Fujian in 1992, has built a successful career in real estate and investment. He is the founder and CEO of the East Times Group and has held various positions in Chinese community organizations.
The Legal Proceedings
The defendants appeared in Brooklyn federal court on June 26, 2026, following their arrests earlier in the day. All four pleaded not guilty to the charges, which include bribery, money laundering, and other offenses. Magistrate Judge Marcia Henry ordered that the defendants be released from custody while they await trial, subject to various conditions.
Frank Carone’s attorney, Arthur Aidala, described the indictment as “weak” and based on “purely circumstantial evidence.” Aidala argued that the indictment took over three years to compile, indicating its lack of substance. Despite the defense’s claims, the indictment presents a detailed account of the alleged scheme, backed by text messages, emails, and other evidence.
The indictment alleges that Zhu and Chen attempted to secure an emergency contract for a migrant shelter at the Microtel Inn by Wyndham in Long Island City, which Zhu owns. Despite initial objections from city officials, the contract was ultimately awarded. The indictment reveals that the defendants allegedly used a consultant to push the project forward, despite sustained resistance from residents and community leaders.
As the legal proceedings unfold, the alleged bribery scheme serves as a stark reminder of the vulnerabilities in the city’s systems during times of crisis. The indictment highlights the need for transparency and accountability in the allocation of public funds and resources.
