A former senior figure in New York City Hall is facing federal corruption charges over the way the city handled its migrant crisis. Frank Caron, a former chief of staff once described as second only to Mayor Eric Adams as the most powerful figure in City Hall, has pleaded not guilty to bribery charges, denying any wrongdoing as the case moves forward.
At the centre of the case is a city contract to shelter migrants. Prosecutors say Caron and his brother, Anthony Caron, accepted and concealed 120,000 dollars in bribes. In return, according to the indictment, they steered an emergency migrant shelter contract to the Microtel, a small hotel in Long Island City, Queens.
The value of that contract was substantial. The deal was worth nearly 7 million dollars, making the alleged payments a small fraction of the public money at stake. The case sets out a direct link between the bribes prosecutors describe and the awarding of a lucrative agreement funded by the city.
The people on the other side of the alleged scheme have also been charged. The hotel is owned by Yan Poe Zhu, who prosecutors say bribed the Caron brothers to secure the contract. Zhu has been charged in the case, along with his business manager, Crystal Chen, widening the circle of those accused over the deal.
The timing points to a period of intense pressure on the city. The contract was awarded in 2022, when the Adams administration was desperate to find housing for thousands of migrants arriving by the week. With shelter capacity stretched, officials were under pressure to secure space quickly, creating the backdrop for the deal now under scrutiny.
Prosecutors allege the decision overrode the city's own assessment. They say city agencies had initially rejected the Microtel as unsuitable, but that Frank Caron overruled that judgement, allowing the hotel to be used despite the concerns. That reversal is central to the accusation that his decisions were shaped by the alleged payments.
Caron, for his part, is fighting the charges. He posted his home in Florida to cover a 2 million dollar bond and left Brooklyn Federal Court after entering his plea. His defence attorney dismissed the case, saying there was nothing to it and that the indictment was built on one assumption after another, setting up a contest that will now play out in court.