A Brooklyn real estate mogul, Erden Arkan, is expected to plead guilty to conspiracy charges related to an illegal campaign donation scheme involving New York City Mayor Eric Adams, federal prosecutors announced on Monday. Arkan, a prominent figure in New York’s Turkish community and co-owner of KSK Construction, which specializes in luxury real estate, is one of several individuals named in the broad corruption investigation that has implicated Adams since October. Arkan’s guilty plea would make him the first person to formally admit involvement in the scandal, which has become one of the most significant political corruption cases in the city.
According to court documents, Arkan plans to plead guilty to a charge of conspiracy to commit wire fraud. This charge stems from his alleged role in facilitating illegal campaign contributions to Adams by having donations made under false names—essentially laundering the funds through third parties to circumvent campaign finance laws. Prosecutors argue that Arkan used these straw donations to fraudulently secure public funds for Adams through the city’s matching funds program. This program provides a substantial government match for small-dollar donations made to political campaigns, but Arkan’s contributions misrepresented the true source of the funds, thus violating both federal and city regulations.
Although Arkan’s defense team did not immediately respond to requests for comment, Adams’ attorney, Alex Spiro, dismissed the significance of Arkan’s impending plea. In an emailed statement, Spiro emphasized that the mayor had no knowledge of Arkan’s illegal activities, citing interviews conducted by the government in which Arkan allegedly stated that Adams was unaware of the scheme.
“We know from the government’s own interviews that Mr. Arkan repeatedly said that Mayor Adams had no knowledge of his actions,” Spiro said.
The mayor has maintained his innocence throughout the investigation, pleading not guilty to federal charges of bribery and conspiracy related to the illegal donations and other benefits he allegedly received.Arkan’s connection to Adams surfaced publicly in November 2023 when federal authorities executed searches at both his residence and the homes of individuals close to the mayor, including Adams’ chief fundraiser and his liaison to the Turkish community. This investigation is part of a larger federal probe into accusations that Adams accepted bribes in exchange for political favors, including luxury travel benefits and campaign contributions from foreign nationals, including a Turkish government official.
The indictment paints a detailed picture of how the alleged scheme unfolded. In April 2021, during a dinner hosted by the Turkish official, Adams is accused of personally soliciting illegal donations from Arkan. The following month, Arkan allegedly organized a fundraiser for the mayor at KSK Construction’s headquarters, where 11 employees made donations ranging from $1,200 to $1,500. However, prosecutors claim that these donations were reimbursed by KSK, making them illegal straw donations, which is a violation of federal campaign finance laws.
Arkan reportedly confirmed to FBI investigators that he had discussed the fundraiser with the Turkish official, though he initially denied reimbursing his employees for their contributions. In a bid to gather more donations for Adams, Arkan sought to involve others within New York’s Turkish community, acknowledging that the fundraising process was not above board. According to the indictment, Arkan told prospective donors that “it may feel like swimming against the current, but unfortunately this is how things work in this country,” a comment that sheds light on his apparent awareness of the illicit nature of the scheme.
The legal troubles surrounding Mayor Adams have continued to grow since the initial charges were brought. In response to the accusations, Adams has vowed to fight the charges “with every ounce of my strength and my spirit,” signaling his determination to stay in office despite the ongoing scandal. However, his administration has been rocked by a series of controversies and investigations, leading to high-profile resignations. The city’s police commissioner, schools chancellor, several deputy mayors, and the director of Asian affairs have all stepped down in recent months amid the cloud of legal scrutiny hanging over the mayor’s office.
In another blow to Adams’ administration, his former buildings commissioner was charged last year in a separate bribery conspiracy involving real estate developers. Furthermore, just last week, Ingrid Lewis-Martin, Adams’ former top advisor and confidante, was charged by state prosecutors for allegedly accepting bribes from real estate developers seeking expedited construction approvals. Lewis-Martin has pleaded not guilty to the charges, but her arrest has added further fuel to the fire surrounding the mayor’s administration.
As the case continues to unfold, with Arkan’s guilty plea expected in the coming weeks, all eyes will remain on Mayor Adams, who faces a scheduled trial in April for conspiracy, wire fraud, and bribery. The outcome of this trial could significantly impact his political career and the future of his administration. Meanwhile, the legal proceedings also highlight the complex web of corruption that has plagued New York City politics, underscoring the challenges of navigating the intersection of business interests and political influence in a city known for its political machines and real estate powerhouses.
