Frank Carone, one of former Mayor Eric Adams' oldest and closest allies, pleaded not guilty Wednesday to federal corruption charges, joining a growing roster of Adams aides facing prosecution.

Carone, the former mayor’s longtime advisor and chief-of-staff, along with Carone’s brother, Anthony Carone, and Chinese nationals Crystal Chen and Yan Po Zhu, appeared in Brooklyn federal court after officers arrested them earlier in the day.

Court records show a 13-count indictment, including charges for bribery, money laundering, and other offenses, was filed under seal and arrest warrants were ordered as early as mid-June. All the defendants pleaded not guilty to the charges.

The U.S. attorney’s office for the Eastern District of New York alleged that the Carone brothers, Chen and Zhu “devised and executed a scheme to exploit the city’s migrant crisis for profit,” according to the indictment, which was unsealed Wednesday. They said Frank Carone agreed to steer a multimillion-dollar shelter contract to a hotel Zhu owned in exchange for about $120,000 in bribes from Zhu and Chen. Prosecutors said the bribes were funneled through Anthony Carone via a bank account tied to Frank Carone’s law firm.

Attorneys for Anthony Carone and the other two defendants could not immediately be reached for comment.

Attorney Arthur Aidala said he is among the lawyers representing Frank Carone. In a statement, he described the indictment as “weak” and said it’s based “on purely circumstantial evidence that’s not worth the paper upon which it’s printed.”

“Everyone who knows the Carone brothers knows they do things the right way; that’s why it took over three years for them to come up with something that they could put on paper,” Aidala continued.

In court Wednesday, Assistant U.S. Attorney Sara Winik said Frank Carone “was entrusted to run our city government but put his own wealth and status above duty.”

Magistrate Judge Marcia Henry ordered that the defendants be released from custody while they await trial, on various conditions.

They must surrender their passports and may travel only to previously permitted locations. They also cannot use drugs, and they have to consent to random home visits, among other restrictions. Zhu must surrender several pistols and rifles he owns to the police. The defendants also cannot speak to one another about the case.

Henry set bail at $2 million for Frank Carone, $500,000 for Anthony Carone, $100,000 for Chen and $8 million for Zhu.

The defendants appeared in court on Wednesday in casual clothing following their arrests. Frank Carone leaned back in his chair during the proceedings, at times clasping his hands in front of his chest. His brother rested his chin in his hand. Chen, who wore a T-shirt, sat with her shoulders hunched, while Zhu leaned toward a Mandarin interpreter who translated the proceedings.

Prosecutors said Zhu and Chen tried to get an emergency contract for a migrant shelter at the Microtel Inn by Wyndham in Long Island City, which Zhu owns, starting in 2022. But even with help from a consultant, they did not initially get the contract, the indictment said. City officials allegedly told Chen the location was not viable. A large number of hotels in the area had already received shelter contracts, drawing “sustained resistance” from residents and community leaders.

‘Thank you my big guy’

Eventually, Zhu turned to Frank Carone, according to prosecutors. The two had a budding friendship, and Zhu asked for his help obtaining an emergency shelter contract one day in June 2022, when Carone visited his Long Island home, the indictment states. Photos from that day, included in the indictment, show them posing together in what appears to be a wine cellar and by a shimmering pool.

Carone was one of Adams’ longest-serving advisers, who helped chart the rise of many key players in Brooklyn politics. He served as the lawyer for the Brooklyn Democratic Party as Adams rose to the office of borough president and later mayor.

About a month after the poolside photograph was taken, Zhu texted Frank Carone that he was interested in getting an emergency contract for the hotel “right away” and asked if the official would “please help me look into it,” according to the indictment. When Frank Carone asked for the address, Zhu responded with the address, adding, “Thank you my big guy,” the indictment states.

About three days later, prosecutors said, Frank Carone called Gary Jenkins, then the head of the Department of Social Services. Jenkins, in turn, sent an email directing staff to “take a look” at Zhu’s hotel, according to the indictment.

The indictment describes confusion and mixed signals among city officials and staff as they tried to make sense of Jenkins's directives to continue considering Zhu’s hotel, despite past denials.

In a text message exchange cited in the indictment, an unnamed city official asked if the address of the hotel “ring[s] a bell for anyone” because Jenkins had been “asking me about it.” Another unnamed official responded that it was the address of a “proposed hotel conversion that has been brought to us many times,” adding that “We have consistently told them no because it is directly next to [a different] shelter,” according to messages quoted in the indictment.

Zhu continued to seek help from Frank Carone, texting him a few days later: “please help me get done we need to refinance,” according to the indictment.

The men met several times afterward, the indictment alleges — Anthony Carone with Zhu at a Manhattan social club, Frank Carone with Jenkins at the same club later that evening, and Zhu with Frank Carone at his Brooklyn home.

Soon after, Chen, Zhu’s business manager, started making payments to Frank Carone through a bank account his brother operated.

The hotel ultimately received more than $6.8 million in emergency shelter contracts, prosecutors said.

Jenkins left his post at DSS and began working for Frank Carone’s new strategy firm, Oak Tree Solutions, months after the alleged bribery scheme occurred. He now leads the nonprofit Urban Pathways and has not been charged in connection with the alleged scheme. He did not respond to a phone message and texts seeking comment.

‘In the end, it’s all about money’

Prosecutors described an elaborate scheme to “conceal the criminal nature” of the payments by disguising them as legal fees. They said Chen sent a “sham retainer agreement” to Anthony Carone for payments that he did not disclose to partners at his law firm, and which he later funneled most of to his brother.

In a text exchange with an unnamed person alleged to have wired the funds, Chen said, “The boss completely trusts the two brothers” and “In the end, it’s all about money and giving the two brothers a way out,” according to the indictment.

Prosecutors said the Carone brothers used most of the funds between October 2022 and April 2023 for “personal benefit,” including transferring money into a credit card account Frank Carone used for travel, meals, fitness memberships, clothing and groceries. Neither brother nor Anthony Carone’s law firm reported the payments to the Internal Revenue Service, according to the indictment. Frank Carone also failed to report the payments to the New York City Conflict of Interests Board while he was serving as Adams’ chief of staff, prosecutors said.

When the payments ended, Frank Carone texted Zhu, “I need to see you,” and, about a month later, another message saying he was “not happy about something,” according to the indictment. Zhu allegedly replied that he had only planned to send funds for a year.

Not the first indictment

Frank Carone is only the latest Adams aide to face criminal charges. Adams himself was indicted for bribery, but President Trump ordered the case dropped, ostensibly so Adams could focus on supporting federal efforts to deport migrants from New York City.

The one-term mayor also saw his police commissioner, Edward Caban, resign amid federal investigations, along with his deputy mayor for public safety, Phil Banks; David Banks, Phil’s brother and the former schools chancellor; Sheena Wright, David’s wife and the former first deputy mayor; and Winnie Greco, a top mayoral adviser.

Ingrid Lewis-Martin, a longtime Adams ally and adviser who was a central figure in City Hall, is facing state corruption charges.

The suspected criminal activity didn’t stop with Carone on Wednesday.

A separate bribery investigation by the U.S. Attorney for the Southern District of New York also appears directed at some of Adams' highest-ranking allies in the NYPD. Commissioner Jessica Tisch on Tuesday said members of the NYPD’s Internal Affairs Bureau and FBI officials executed search warrants involving former and current NYPD members.

Among those searched was former NYPD Chief of Department Jeffrey Maddrey, who resigned in late 2024 amid allegations of sexual misconduct.

The two other top brass being investigated alongside Maddrey are Tarik Sheppard, the department’s former Deputy Commissioner of Public Information, and the current Chief of Manhattan South, James McCarthy, a law enforcement official said. It was not immediately clear how they were potentially involved.

NYPD spokesperson Brad Weekes said McCarthy was put on modified duty, transferred and replaced Wednesday morning by Assistant Chief Melissa Eger, who had been serving as the Staten Island borough commander. Sheppard retired from the department last year.

None of the NYPD officials at the core of Wednesday’s investigation had been arrested or charged, Weekes said.

Reporters David Brand, Ben Feuerherd and Elizabeth Kim contributed to this report.

This story has been updated with new information.