Inside the courtroom: Frank Carone pleads not guilty in Brooklyn federal court

Sixteen months after the feds abruptly dropped corruption charges against former Mayor Eric Adams, his ex-chief of staff, Frank Carone, pleaded not guilty to bribery and money laundering charges in Brooklyn federal court on Wednesday after he allegedly pocketed $120,000 to help a friend snag a $6.8 million government contract.

Carone, a wealthy Brooklyn lawyer and powerbroker, faces up to 20 years in jail as part of the alleged kickback scheme in which he intervened to help out the friend, hotel owner Andy Zhu, who wanted an inn approved as an emergency shelter during the immigrant housing crisis in New York City in 2022, prosecutors charge.

The Microtel Inn by Wyndham in Long Island City had been rejected several times by city officials but then got the OK after Carone and his younger brother Anthony Carone created a “sham” retainer agreement for their legal services, then sent the $120,000 payment to a law firm account controlled by Anthony Carone, who is also a lawyer, prosecutors allege. The Carones failed to report the income, they said.

In a courtroom packed with court officers, U.S. marshals and Diplomatic Security Service police, Frank Carone appeared relaxed as he sat next to one of his attorneys, Andrew Goldstein, leaning back in his chair and crossing his legs at the ankle.

Throughout the arraignment, Frank Carone occasionally crossed his arms, looked around the court, gazed at the prosecution table, rubbed his face and smiled once briefly while conferring with Goldstein. He came dressed casually, wearing a dark blue zippered sweater, which he rolled up at the sleeves, black pants and slip-on black shoes with no socks. His face was unshaven.

“The defendants’ actions show that they believe the rules do not apply to them,” prosecutor Sara Winik told Judge Marcia Henry.

Both brothers were in court on Wednesday, as were Zhu and his business partner, Crystal Chen, to enter pleas in the 13-count indictment, which includes fraud and tax-evasion charges for Frank Carone.

“He enters a plea of not guilty,” Goldstein said of Frank Carone. All three co-defendants also pleaded not guilty. None is being held.

“This indictment is based on assumption after assumption after assumption,” said Arthur Aidala, a defense lawyer also representing Frank Carone, who didn’t speak during the proceeding other than to say, “Yes, your honor,” when asked by Henry if he understood the requirements of his release.

Frank Carone, who spent all of 2022 as Adams’s chief of staff, surrendered his passport and will have to wear an ankle bracelet while the case plays out. He agreed to put up his home in Boca Raton and cash to satisfy a $2 million bond. He and Anthony Carone are allowed to talk to each other as long as they don’t discuss the case unless lawyers are involved, according to arrangements worked out with prosecutors.

Frank Carone is not allowed to use any drugs, including marijuana, the judge said, and is subject to “random home visits” and work verification. He provided a DNA sample.

When the judge read the charges, Frank Carone leaned forward and followed along as Goldstein pointed to sections of the legal papers. He declined to speak to reporters afterward.

He and his co-defendants are due back in court on July 1.