New York City election officials are raising the stakes in their audit of Mayor Eric Adams’ 2021 campaign — a move that could foreshadow the beleaguered mayor being forced to repay $10 million.
In a Jan. 16 letter obtained through a Freedom of Information Law request, the Campaign Finance Board informed Team Adams it was taking more time to complete an audit of his 2021 election effort after discovering bookkeeping irregularities and learning of an alleged straw donor scheme via the mayor’s federal criminal case.
Challenges and Allegations
In the missive, the board’s general counsel doubled down on the possibility Adams would be found “in breach of certification,” the board’s most serious punishment and one that could require Adams to repay the $10.1 million in public matching funds he received during his first run for mayor. He would also be barred from receiving public monies in the future.
“Because the CFB is investigating the Campaign for potential campaign-related fraud and activity that may constitute a breach of certification, you are hereby informed that the deadline for completion of the Campaign’s final audit is suspended indefinitely,” attorney Joseph Gallagher wrote.
Adams’ campaign did not respond to a request for comment.
Political Fallout and Response
The board declined to comment on the original deadline for completing the audit but typically takes years to pore over mayoral campaign ledgers.
A crowded field of candidates has assembled to challenge the mayor ahead of the June Democratic Primary. And late last year, the CFB dealt the mayor a serious setback.
In December, the board denied the mayor’s request for $4.3 million in public matching funds, citing the federal criminal case. In a follow-up letter sent to the campaign, the CFB first raised the possibility of finding Adams’ in breach of certification.
Adams still has some hope of receiving public funds. In a separate letter dated Jan. 16, the board said the mayor’s campaign could petition for a reconsideration. It was not immediately clear whether the campaign has done so, but the mayor has resumed fundraising to make up for the lost cash in an apparent hedge.
Legal and Fundraising Challenges
The sudden cash shortfall comes as low polling numbers and a budding relationship with President Donald Trump have clouded the mayor’s path to a second term. Adams has courted the president for months, and the commander in chief has openly mused about pardoning the Democratic mayor. Now, Trump’s top prosecutors are in talks to potentially drop the case instead.
As part of its oversight of candidate fundraising and spending, the board has long suspected Adams of using more bundlers — the term for third-party fundraisers — than his team has let on.
In a Jan. 15 report, also obtained via a records request, the board flagged a series of donations that may have been raised by an intermediary, Leon Goldenberg.
Goldenberg is CEO of Goldmont Realty and is involved with a number of Jewish organizations including COJO of Flatbush and Agudath Israel of America. He did not immediately respond to a request for comment.
Adams’ campaign did not initially report Goldenberg, who is a registered city lobbyist, as bundling contributions. The campaign will now have an opportunity to review and change its disclosures.
Adams’ team has reported relatively few intermediaries compared to other campaigns. But the campaign made a rare fix last year, POLITICO first reported, listing a high ranking NYPD employee as an intermediary after CFB auditors flagged a series of donations.