Latest news with #ErdenArkan
New York Times
18 hours ago
- Politics
- New York Times
Adams Donor Avoids Prison After Admitting to Campaign Finance Scheme
A Brooklyn businessman was sentenced to one year of probation on Friday for conspiracy to commit wire fraud after making illegal donations to Mayor Eric Adams's 2021 campaign. The businessman, Erden Arkan, pleaded guilty in January as part of a sprawling corruption case unveiled against Mr. Adams last year. President Trump's Justice Department moved to abandon the charges against the mayor weeks after Mr. Arkan's plea. Mr. Arkan, who is Turkish American, has close ties to New York City's Turkish community and owns KSK Construction, a local building firm. He pleaded guilty to soliciting funds from 10 of his employees and to making straw donations to Mr. Adams's campaign. The charges grew out of an investigation into the mayor conducted by the U.S. attorney's office in Manhattan, the F.B.I. and the city's Department of Investigation. Prosecutors said Mr. Arkan gave $1,250 apiece to the employees to donate to Mr. Adams's campaign. At a hearing at Manhattan federal court on Friday before Judge Dale E. Ho, Mr. Arkan said he accepted responsibility for his actions. 'I feel profound sadness for the choice I made,' he said, adding: 'I'm deeply sorry to New York City taxpayers.' Judge Ho said that the actions he pleaded guilty to were not a 'victimless crime,' and that if donors circumvented the limits imposed by law, it would breed cynicism in the system. Want all of The Times? Subscribe.
Yahoo
19 hours ago
- Business
- Yahoo
Turkish businessman hit with probation, fines for funneling illegal cash to NYC Mayor Adams' campaign
NEW YORK — Brooklyn construction company executive Erden Arkan was sentenced to one year of probation and ordered to pay more than $27,000 in fines Friday after pleading guilty to pumping illegal straw donations into Mayor Eric Adams' 2021 campaign coffers as part of a scheme prosecutors say involved Turkey's government. Though the related criminal case against Adams is over, it was revealed in court Friday that Arkan has been cooperating in the city Campaign Finance Board's ongoing investigation into allegations that the mayor's 2021 and 2025 campaigns engaged in a variety of straw donor schemes. Arkan, a Turkish national and owner of Williamsburg-based KSK Construction who first pleaded guilty in January, was on the verge of tears as he accepted his sentence during a morning hearing in Manhattan Federal Court. 'I feel profound sadness for the choices I (made),' he said, his voice cracking up. 'I'm sincerely sorry to the New York City taxpayers ... I also apologize to this court.' The cash Arkan must cough up comprises a $9,500 fine and an $18,000 restitution payment to the Campaign Finance Board. According to his indictment, Arkan, 76, hosted a fundraiser at his offices for Adams' first mayoral campaign in May 2021 that drew in a total of $14,000 from 11 individuals. Records show Adams' team then submitted those contributions for public matching funds, netting his campaign an additional $18,000 in taxpayer cash. Prosecutors allege the donations were illegal, as Arkan reimbursed his employees for making them in violation of federal and local laws, resulting in the public matching funds unlocked also being fraudulent. Additionally, prosecutors allege Arkan made the illicit donations to Adams 'at the behest' of Reyhan Ozgur, the Turkish government's ex-consul general in New York, identified in court papers as 'Turkish Official.' According to Adams' now-dismissed corruption indictment, his campaign knowingly solicited and accepted illegal campaign donations and bribes, mostly from Turkish government operatives, in exchange for political favors, like assistance with city building permits. President Donald Trump's administration dropped the Adams indictment as part of a controversial deal that didn't address the merits of the case. The presiding judge, Dale Ho, wrote the deal 'smacks of a bargain' in which the mayor was spared prosecution in exchange for assisting Trump's immigration agenda; Adams has denied any quid pro quo. Arkan's defense attorney, Jonathan Rosen, questioned during Friday's court hearing how it makes sense for the Trump-controlled Manhattan U.S. attorney's office to quash the mayor's case, but move forward with Arkan's, given the overlap between them. 'Nothing can normalize this unfair exercise of prosecutorial discretion,' Rosen said. Ho, who has presided over the Arkan case as well, acknowledged there was 'incongruity' between his indictment and the Adams case. However, the judge rejected the idea Arkan shouldn't face the music as a result. 'It is not a victimless crime,' Ho said, arguing Arkan's offenses violated the public trust in a way that 'breeds cynicism.' In a sentencing submission filed earlier this month, Rosen wrote Arkan 'did not coordinate his decision to use straw donors' with the Turkish government, though he did acknowledge his client was first introduced to Adams via the Turkish consul general. Rosen wrote Arkan devised the straw donor scheme after failing to line up enough individual donors to contribute a minimum of $10,000 that the mayor's campaign had informed him he needed to come up with in order to host the fundraiser. In a letter to the court filed ahead of Arkan's sentencing, the Campaign Finance Board's general counsel, Joseph Gallagher, wrote his crimes 'wasted taxpayer dollars' and 'deteriorated the integrity' of the city's public matching funds program. Gallagher also wrote: 'The Board appreciates that Mr. Arkan is cooperating with the Board's ongoing audit and investigation of the Adams 2021 and 2025 Campaigns.' As part of its ongoing probe, the CFB has denied the mayor millions of dollars in public matching funds for his reelection bid this year, declaring it continues to believe he has 'violated the law' despite the dismissal of his federal case. The mayor maintains he has done nothing wrong and is contesting the matching funds denial. Arkan is the first person to be sentenced as part of a criminal case connected to the mayor's historic indictment. A second man, former Adams administration official Mohamed Bahi, pleaded guilty earlier this week to orchestrating a similar straw donor scheme in which another real estate executive of Uzbek descent pumped illegal cash into the mayor's 2021 campaign by making contributions in the names of employees. Bahi is expected to be sentenced this fall. _____
Yahoo
20 hours ago
- Politics
- Yahoo
Brooklyn construction magnate gets probation for funneling illegal donations to NYC Mayor Eric Adams
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. Solve the daily Crossword
Toronto Star
20 hours ago
- Politics
- Toronto Star
Brooklyn construction magnate gets probation for funneling illegal donations to NYC Mayor Eric Adams
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.
The Independent
20 hours ago
- Politics
- The Independent
Brooklyn construction magnate gets probation for funneling illegal donations to NYC Mayor Eric Adams
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.
