Citing Mayor Adams’ federal corruption indictment, the city’s election finance watchdog agency is weighing the possibility of finding his campaign in “breach of certification” — the panel’s most severe penalty that could potentially cost his team as much as $10 million, the Daily News has learned.
The detail was contained in a Dec. 18 letter sent to Adams’ 2025 campaign by the CFB elaborating on the board’s decision this week to deny the mayor, who has pleaded not guilty in his federal case, the first round of public matching funds for his reelection run.
In the letter, Danielle Willemin, the CFB’s auditing director, wrote that Adams’ five-count indictment “establishes probable cause” he committed wire fraud to illicitly obtain public matching funds for his 2021 and 2025 campaigns and solicited illegal donations from foreign nationals for both his mayoral runs.
“The issues raised in this letter may cause the board to consider whether the campaign submitted a disclosure statement which the participant knew or should have known includes substantial fraudulent matchable contribution claims, which is one of the activities that can can lead to a finding of breach of certification,” Willemin wrote in the letter, a copy of which was obtained by The News via a Freedom of Information Law request.
“In addition, the campaign may be assessed financial penalties and may be found ineligible to receive public funds based on a finding of fraud or material misrepresentation, whether or not it is found in breach.”
The breach of certification finding is seen as the board’s most serious penalty because it doesn’t just block campaigns from receiving any future matching funds, it can also require them to pay back all public funds they’ve already received.
Adams’ 2021 campaign received some $10 million in public matching funds.
Willemin wrote in the letter that the breach of certification is a potential finding the board is looking at as it continues a long-running audit of Adams’ 2021 campaign and scrutinizes matters related to his 2025 campaign, too, in light of his indictment.
A breach of certification determination could deal a blow to Adams’ reelection efforts, as he’s already starting off the 2025 campaign without new matching funds as he faces more than a half dozen challengers in June’s Democratic mayoral primary.
A lawyer for Adams, who is set to stand trial in April, didn’t immediately return a request for comment. A spokesman for the CFB declined to comment.
This past Monday, the CFB denied Adams about $4 million he had sought in public matching funds for his 2025 campaign, citing concern about his indictment, which alleges he solicited bribes and illegal political donations, mostly from Turkish government operatives, in exchange for political favors.
Adams’ campaign can appeal the finding and try to apply again for matching funds on the next disbursement date set for Jan. 15, though legal expert have said the board is unlikely to come to any other conclusion unless something materially changes in his favor in his corruption case.
This is a breaking story. Please check back for updates.
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