New York City Mayor Eric Adams has already been charged with federal crimes related to his 2021 campaign fundraising, but will face further scrutiny when fundraising numbers for his 2025 re-election campaign are released on Friday. It is expected that
The new numbers will be released by the city’s Campaign Finance Commission and will be the first since Adams was indicted on corruption charges last month.
Among the crimes he is accused of committing include colluding with foreign nationals to illegally funnel funds to the 2021 election campaign through American citizens, so-called straw donors. The indictment also details instances in which prosecutors say Adams’ campaign encouraged businessmen to circumvent contribution limits by having employees donate and reimburse them.
On his way to becoming mayor after raising nearly $9 million, Mr. Adams took advantage of the city’s generous generosity program, which matches small donations, and netted an additional $10 million in taxpayer dollars. But because of straw donors, some of those funds were obtained fraudulently, the indictment says.
With the Mr. Adams 2025 campaign set to ask taxpayers for more money later this year, here’s what you need to know about the city’s matching funds program.
What is the Matching Funds Program?
New York City’s matching funds program was introduced in 1988 amid a spate of corruption scandals and calls for political reform.
Mayor Edward I. Koch, in conjunction with City Council President Peter Vallone, led the effort, providing public funds to political newcomers who agree to limit campaign contributions and spending. It was hoped that this would encourage the incumbent to challenge the incumbent. The program was designed to amplify the voice of small donors and curtail the influence of donors with deeper pockets.
Initially offering a dollar-for-one match, the program has since grown to give candidates $8 for every dollar donated by city residents up to $250. That means a candidate who receives a one-time donation of $250 can claim an additional $2,000 in public funds for campaign contributions.
Campaign experts and research say the program has changed the way candidates solicit donations and encouraged political participation among average New Yorkers. However, it can also be used by candidates looking to abuse the system.
What does this have to do with Eric Adams?
The 2021 election was the first mayoral election in which an open vote was held, up from 6-1 to 8-1. The contribution limit for donors was also lowered from $4,950 to $2,100.
Adams raised more than $8.9 million in the 2021 mayoral race and received more than $10 million in matching public funds, more than any other citywide candidate in the same year.
The indictment, unsealed late last month, outlines multiple instances in which prosecutors said Adams’ campaign attempted to illegally exploit the matching funds program through straw donation schemes.
According to prosecutors, on April 2, 2021, during a dinner with Turkish officials, Mr. Adams explained to a Brooklyn businessman who runs a construction company about the matching funds program and asked for a donation.
A month later, the businessman held a fundraiser for Mr. Adams and gave 10 employees $1,250 each to donate to Mr. Adams’ campaign. The campaign then requested matching funds for eight of those straw donations, resulting in an additional $16,000, prosecutors said.
In total, more than $69,000 was raised from 84 donors at a fundraising event held by the businessman, whose description matches Elden Alkan, owner of a company called KSK Construction. The campaign used those donations to seek an additional $63,760 in matching funds, according to the indictment.
In another case described in the indictment, an Uzbek businessman who wanted to overturn donation limits received a $10,000 donation from Adams’ campaign in five installments of $2,000 each. We were instructed to donate 4 times through our employees. Prosecutors said the businessman did this by repaying his employees, and his campaign asked for funds to match the donations to get an additional $10,000.
Have his fundraising efforts ever gained attention?
Long before he was indicted, Adams’ 2021 fundraising efforts had come under intense scrutiny from law enforcement and the Campaign Finance Board.
Last July, Manhattan District Attorney Alvin L. Bragg indicted Adams’ longtime friend and former city police lieutenant Dwayne Montgomery, along with other Queens construction company owners. . They used straw donors to fraudulently obtain tens of thousands of dollars in funds for the mayor’s 2021 election campaign.
Their alleged tactics mirrored those described in the federal indictment against Mr. Adams. Four of the defendants who pleaded guilty used the names of construction company employees without their knowledge and made several $250 donations, each with the goal of generating up to $2,000 in public funds. Ta.
Auditors then pointed to further irregularities in Mr. Adams’ fundraising.
In a 900-page draft audit of the 2021 mayoral race, the Campaign Finance Commission documented numerous missed payments, questionable contributions and possible misallocation of up to $2.3 million in taxpayer funds.
Auditors identified 54 donations from people who either never donated money or were reimbursed for their contributions by others. Those donations totaled $24,500 and generated nearly $50,000 in matching taxpayer money, according to a New York Times analysis.
The board also asked the campaign to reveal who paid for Adams’ 158 fundraisers. That includes one hosted by Lian Wu Xiao, whose family oversees New World Mall in downtown Flushing, Queens. The mall was searched by the FBI in February as part of a separate investigation by the U.S. Attorney’s Office for the Eastern District of New York.
The audit is still in its draft stage, and Adams’ campaign still has the opportunity to answer questions posed by the board.
The Campaign Finance Board granted the mayor four extensions to give him more time to respond, according to internal communications obtained by the Times.
Most recently, on Aug. 30, the mayor’s campaign requested a 90-day extension citing an investigation by the U.S. Attorney for the Southern District of New York that led to Adams’ indictment on Sept. 25.
What impact could this have on the mayor’s 2025 campaign?
It is unclear what action the Campaign Finance Commission may take against the mayor’s campaign. The commission’s penalty guidelines state that in the “most egregious circumstances,” staff may recommend fines of up to $10,000 for each violation. If a campaign is found to be in “violation” of the certification that candidates must sign to certify that they are in compliance with campaign finance rules, the board may forfeit all public funds received. will request the return of the
Federal prosecutors said in the indictment that Adams solicited and received straw donations for both his 2021 election campaign and his 2025 reelection campaign.
For example, in September 2023, the campaign organized a fundraiser for international donors, disguised as a conference to discuss sustainability issues, with a PowerPoint presentation and a $5,000 participation fee, prosecutors said. Ta.
It remains to be seen whether that will affect Mr. Adams’ future requests for matching funds. He has already raised more than $4 million for his 2025 mayoral race and is asking taxpayers for an additional $4 million, according to election records filed in July. However, the matching funds will not be paid until December.
The Campaign Finance Commission is deciding whether to withhold matching funds, as did former comptroller and mayoral candidate John Liu, after two campaign workers were jailed in the straw donation scandal. did not answer the question.
