(NEW YORK) -- Frank Carone, a former chief of staff to ex-New York Mayor Eric Adams, was arrested on Wednesday morning along with his brother Anthony and two others as part of a federal bribery case, according to federal investigators.

While serving as chief of staff, Carone allegedly, "agreed to accept a series of bribe payments" as part of a scheme to "exploit the city's migrant crisis for profit," according to an indictment unsealed Wednesday in Brooklyn federal court.

In 2022, during the influx of migrants into New York, the city needed to rent entire hotels to accommodate asylum-seekers using emergency contracts.

Carone allegedly accepted $120,000 in bribes from two co-defendants, Crystal Chen and Yan Po Zhu, in exchange for steering a multimillion-dollar emergency contract to a Microtel in Long Island City, Queens, that they controlled, federal prosecutors alleged.

To conceal the bribes, the payments were allegedly funneled through an account that Carone's brother, Anthony, controlled, the indictment said. 

"In total, Zhu and Chen paid approximately $120,000 to F. Carone in exchange for an Emergency Shelter Contract for the Microtel, which was laundered through the Law Firm #2 account by A. Carone and his co-defendants," the indictment said.

The indictment included photographs of Zhu and Carone socializing at Zhu's Long Island home in June 2022, a time when the indictment said Zhu and Chen's efforts to secure an Emergency Shelter Contract through other means were stalling. 

"Zhu leveraged his burgeoning personal relationship with the defendant, Frank V. Carone," the indictment said.

The city ultimately awarded Microtel a nearly $7 million contract, even though it was smaller than another Long Island City hotel under consideration. 

The indictment quoted an unnamed city employee who allegedly "lamented that replacing the professional's staff's recommendations with the Microtel 'meant a loss of 75 units,' which would necessitate opening more locations to make up the difference."

The defendants are charged with 13 counts, including conspiracy, federal program bribery and obstruction.

Carone helped with Adams' transition into office in January 2022 and served as the mayor's chief of staff until December that year, when he departed the administration.

As he departed, he said that in his position it had been an "honor keeping the trains running for this administration," according to a press release at the time.

Arthur Aidala, an attorney representing Carone, said in a statement to ABC News that Carone was notified that he was under federal investigation three years ago and denied the allegations.

"Frank Carone was part of an administration that publicly challenged what it viewed as the previous White House's dangerous immigration policies and their harmful impact on New York City," Aidala said in a statement to ABC News. "Following an extensive three-year investigation that examined numerous aspects of Mr. Carone's personal and professional life, prosecutors ultimately brought these charges."

"Mr. Carone maintains his innocence and looks forward to addressing these allegations through the legal process. He is confident that the facts will demonstrate that he acted lawfully and appropriately at all times," Aidala added.

Attorney information for the other defendants was not immediately available.

Todd Shapiro, a spokesperson for former Mayor Adams, said in a statement that his "prayers are with [Carone's] family"

"Frank Carone has dedicated decades of his life to public service, the legal profession, and helping countless individuals, businesses, and charitable organizations throughout New York," he said.

Copyright © 2026, ABC Audio. All rights reserved.