Businessman in NYC Mayor Adams Criminal Case to Plead Guilty
(Bloomberg) -- A Turkish-born businessman tied to the criminal case against New York City Mayor Eric Adams plans to plead guilty to an illegal campaign contribution charge, federal prosecutors disclosed in a court filing.
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Erdan Arkan, who was previously identified only as “Businessman-5” in the indictment against Adams, will be charged with conspiracy to commit wire fraud through the collection of straw-man campaign contributions, according to a letter filed Monday to two judges involved in the case.
“Arkan has indicated that he wishes to plead guilty,” prosecutors said in the letter.
Arkan would be the latest defendant to plead guilty to breaking campaign finance laws to provide funds to Adams’ 2021 campaign for mayor. A spokesman for Acting US Attorney Edward Kim in Manhattan declined to say whether Arkan has agreed to cooperate in the prosecution of Adams, who has denied wrongdoing.
“We know from the government’s own interviews that Mr. Arkan repeatedly said that Mayor Adams had no knowledge of his actions,” Alex Spiro, the lead lawyer for the mayor, said in response to the court filing. “Mr. Arkan’s conduct will have no bearing on the Mayor’s case whatsoever.”
Arkan’s lawyer didn’t immediately respond to voicemail and email messages seeking comment.
Mayor’s Indictment
Adams was charged in September with accepting illegal campaign donations and taking luxury travel upgrades from the government of Turkey in exchange for pressuring officials to permit the opening of a new Manhattan tower consulate without a proper fire inspection.
Adams, the first New York mayor to be indicted while in office, faces charges of bribery, fraud, conspiracy and soliciting illegal campaign contributions. He’s pleaded not guilty and refused to step down.
Arkan’s planned guilty plea is the latest in a drumbeat of charges and investigations targeting the mayor, his closest associates and people tied to his 2021 campaign. Ingrid Lewis-Martin, a former top adviser to the mayor, was charged last week with bribery and money-laundering.
In the Adams indictment, prosecutors said the mayor sought and accepted straw donations from “Businessman-5,” who was identified in Monday’s letter as Arkan. The businessman is a “prominent member of New York City’s Turkish community” and operated a construction company in the New York area, prosecutors said.
Arkan worked to recruit other construction executives and people in the Turkish community to donate to the Adams campaign, holding a fundraiser at his company’s offices in May 2021, according to prosecutors. Before the fundraiser, Arkan allegedly gave $1,250 to each of 10 employees, who then donated the money to the campaign.
Eight of the alleged straw donations, made in the names of New York City residents, improperly triggered the payment of matching funds from the city, according to the indictment.
The case is US v. Adams, 24-cr-00556, US District Court, Southern District of New York (Manhattan).
(Updates with comment from Adams’ lawyer, background on case.)
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