What's New
A Brooklyn real estate developer implicated in a high-profile corruption investigation involving New York City Mayor Eric Adams is set to plead guilty to conspiracy charges, federal prosecutors said on Monday.
Erden Arkan, a co-owner of the luxury construction firm KSK, has been accused of collaborating with a Turkish government official to funnel illegal campaign contributions to Adams.
Why It Matters
Arkan's guilty plea would mark the first in a case that has drawn significant attention to the mayor's fundraising practices and political alliances.
Adams, a Democrat, is facing a federal investigation over alleged fraud and corruption, including claims of accepting luxury travel benefits worth more than $100,000 and illegal campaign donations from foreign nationals. He has pleaded not guilty. Multiple members of his administration are also being probed.
What To Know
According to court filings, Arkan plans to admit to charges of conspiracy to commit wire fraud by collecting campaign contributions for Adams that were made under the name of someone other than the true contributor.
Prosecutors say Adams improperly used these funds to qualify for public matching funds, a program designed to amplify small-dollar contributions
Adams has maintained his innocence, pledging to "fight the charges with every ounce of my strength."
Arkan's firm's ties to Adams emerged in November 2023 as investigators searched his residence, along with the home of Adams' chief fundraiser and his liaison to the Turkish community.
The indictment against Adams details a 2021 dinner where he allegedly solicited illegal contributions directly from Arkan, referred to in court documents as "Businessman-5." Soon after, Arkan hosted a fundraiser for Adams at KSK's Brooklyn headquarters.
Prosecutors allege that Arkan reimbursed employees who donated between $1,200 and $1,500 to the campaign, a practice that constitutes illegal straw donations.
Arkan later confirmed to the FBI that he had spoken to the Turkish official about the fundraiser. He initially denied reimbursing his employees, prosecutors said.
Court documents also highlight Arkan's reluctance about the scheme, citing comments he made to others in New York's Turkish community that it "may feel like swimming against the current but unfortunately this is how things work in this country," according to the indictment.
What People Are Saying
An attorney for Adams, Alex Spiro, said in an emailed statement to The Associated Press (AP) that the decision would have "no bearing on the Mayor's case whatsoever."
"We know from the government's own interviews that Mr. Arkan repeatedly said that Mayor Adams had no knowledge of his actions," Spiro said.
According to the AP, a lawyer for Arkan did not immediately respond to the new agency's request for comment
A Mounting Scandal For Adams
While Adams has pleaded not guilty to all charges, the case has compounded an already difficult period for his administration.
High-profile resignations, including those of his police commissioner and multiple deputy mayors, have been accompanied by separate corruption probes. Most recently, Ingrid Lewis-Martin, Adams' former top adviser, was charged with accepting bribes to expedite real estate approvals.
What Happens Next
As Adams prepares for his trial in April, the plea agreement from Arkan is expected to play a role in the broader investigation into the mayor's alleged conduct.
This article includes reporting from The Associated Press.
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