NYC Mayor Eric Adams indicted in federal investigation, sources say

NEW YORK — Mayor Eric Adams has been charged in an indictment following a federal corruption investigation, sources told the Daily News late Wednesday.

It was unclear what the charges were or if they were related to a probe into foreign influence and donations from Turkey related to his 2021 mayoral campaign or another one of the investigations that has been swirling around his administration in recent days.

The indictment, which remained sealed, was initially reported by the New York Times.

An arrest would make Adams the first mayor in the modern era to face criminal charges while in office and comes as his administration is reeling from the news of additional investigations and a series of high-profile resignations.

“I always knew that If I stood my ground for New Yorkers that I would be a target—and a target I became. If I am charged, I am innocent and I will fight this with every ounce of my strength and spirit,” Adams said in a statement.

In a recorded video statement, Adams made it clear he had no intention of stepping down, even as potential challengers seized on Wednesday’s news to call for his resignation. He called the changes “entirely false, based on lies.”

“I can also understand how everyday New Yorkers would be concerned that I cannot do my job while I face accusations. But I have been facing these lies for months, since I began to speak out for all of you and their investigation started — yet the city has continued to improve. Make no mistake: you elected me to lead this city — and lead it I will.”

The investigation related to potential Turkish influence exploded into public view in November 2023 when federal agents searched Adams’ fundraiser Brianna Suggs’ Crown Heights brownstone. According to a search warrant reported by The New York Times, the raid on Suggs’ townhouse home in Crown Heights was part of a federal public corruption investigation into whether Adams’ 2021 campaign conspired with the Turkish government and a Brooklyn construction firm to funnel foreign cash into the campaign’s coffers via straw donors.

The warrant, seeking troves of financial records, documents related to contributions to Adams’ 2021 campaign and travel logs, reportedly sought evidence of a conspiracy to steal federal funds, make illegal campaign donations with foreign money and fraud, and whether Adams’ campaign secured perks for Turkish government officials and executives at the construction company, a Williamsburg-based outfit called KSK Construction Group.

Adams had traveled to Washington the day of the Suggs raid to meet with White House officials about the city’s migrant crisis — but turned back and canceled all his meetings after the news broke. Four days later, the feds stopped him on the street and seized his phones.

Earlier this week, it was also revealed that the feds have subpoenaed information about interactions between Adams, his campaign and City Hall and six foreign counties as part of a probe that is scrutinizing, at least in part, possible illegal campaign contributions to Adams’ 2021 campaign from Turkey.

City Hall was rocked by a new wave of investigations just weeks ago when federal investigators searched the homes of four of the most high-ranking officials in Adams’ administration, including former NYPD Commissioner Edward Caban, and seized electronics from them as well as top City Hall adviser Tim Pearson. The flurry of federal law enforcement activity had kicked off when FBI agents arrived to search the homes of Sheena Wright, Adams’ first deputy mayor, and Philip Banks, his deputy mayor for public safety.

Since those raids, several top members of the administration have resigned, including NYPD Commissioner Edward Caban, Chief Counsel Lisa Zornberg, Health Commissioner Ashwin Vasan and Schools Chancellor David Banks.

The investigation, sources said, is looking at the possibility of influence peddling and kickbacks.

One focus, sources said, is the former commissioner’s brother, James Caban, and the question of whether he was squeezing nightlife venues for promises of preferential treatment by the NYPD. His lawyer has said he did nothing wrong. Another line of inquiry has focused on Terence Banks, brother of David and Phil Banks, who runs a consulting company with clients that did business with City Hall.

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