Brooklyn construction magnate gets probation for funneling illegal donations to NYC Mayor Eric Adams

Yahoo

2 hours ago

NEW YORK (AP) — A Brooklyn construction magnate was sentenced Friday to a year of probation for working with a Turkish government official to funnel illegal campaign contributions to New York City Mayor Eric Adams, resolving one of two related federal cases after the mayor's criminal charges were dropped.
Erden Arkan, 76, told Manhattan federal Judge Dale Ho that he regretted his 'poor judgments' in engaging in the straw donor scheme, which helped Adams fraudulently obtain public money for his 2021 mayoral bid under the city's matching funds program.
Ho cited Arkan's age and otherwise clean record in imposing the sentence, telling the Turkish-born businessman that his immigrant success story 'exemplifies the American dream.'
'I hope that you don't let this one mistake define you,' Ho told Arkan.
Arkan faced up to six months in prison under federal sentencing guidelines, but prosecutors and the federal probation officer agreed that no prison time was warranted. In addition to probation, he must also pay a $9,500 fine and $18,000 in restitution.
Arkan pleaded guilty in January to a conspiracy charge in Manhattan federal court. Weeks later, President Donald Trump's Justice Department pressured prosecutors to drop their underlying case against Adams, ultimately getting it dismissed.
In court Friday, Arkan's lawyer Jonathan Rosen blasted the government for continuing to pursue his case after getting Adams' charges dismissed.
'To put it mildly, this is a very unusual case. In fact, it is unprecedented,' Rosen argued.
In February, Justice Department leadership ordered Manhattan federal prosecutors to drop Adams' case, arguing that it was hindering the Democratic mayor's ability to assist the Republican administration's immigration crackdown.
Ho, who also oversaw the mayor's case, dismissed his charges in April. In a written opinion, he agreed it was the only practical outcome but also criticized what he said was the government's 'troubling' rationale for wanting the charges thrown out.
While Adams was spared, prosecutors continued to pursue related cases against Arkan and a former aide to the mayor, Mohamed Bahi.
Bahi, who served as City Hall's chief liaison to the Muslim community, pleaded guilty on Tuesday to soliciting straw donations for Adams' mayoral campaign from employees of a different Brooklyn construction company at a December 2020 fundraiser.
Arkan acknowledged in his January plea that he knowingly violated the law by reimbursing employees of his construction firm for their donations to Adams' campaign.
In brief remarks Friday, he apologized to city taxpayers who bankroll the matching funds program, telling Ho: 'I love this city. I dedicated my life to making it better. It pains me that I have harmed it.'
According to prosecutors, Adams personally solicited donations from Arkan and a Turkish consular official at an April 2021 dinner. The following month, Arkan held a fundraiser at the headquarters of his construction company, KSK, in which 10 employees donated between $1,200 and $1,500 to the campaign. They were later reimbursed by Arkan, making them illegal straw donations.
Adams then used those funds to fraudulently obtain public money under the city's matching funds program, which provides a generous match for small-dollar donations, prosecutors allege.
A well-known member of New York's Turkish community, Arkan's ties to Adams first emerged in November 2023 after federal investigators searched the businessman's home, along with the home of Adams' chief fundraiser and his liaison to the Turkish community.
Adams pleaded not guilty to bribery and other charges after a 2024 indictment accused him of accepting illegal campaign contributions and travel discounts from a Turkish official and others — and returning the favors by, among other things, helping Turkey open a diplomatic building without passing fire inspections.
At a Feb. 19 hearing that precipitated the dismissal of his case, Adams told Ho: 'I have not committed a crime.' The first-term mayor, a former police captain, skipped the June Democratic primary and is currently running for reelection as an independent.
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