By Greg B. Smith, THE CITY | Editorial Credit: Steve Sanchez Photos / shutterstock.com 

Campaign Finance Board declares the mayor’s conduct, including indictment allegations of fraudulent fundraising, as likely “conduct in violation of the campaign finance law.”

The panel that oversees campaign finance to restrict the influence of money in politics Monday denied Mayor Eric Adams millions of dollars in public matching funds he’d requested for his re-election, citing his track record of alleged fraud and his campaign’s noncompliance with the board’s inquiries.

The city Campaign Finance Board’s announcement at its lower Manhattan office dealt a significant blow to the mayor’s campaign to win a second term as he prepares to go to trial in federal court in April, charged with bribery and multiple counts of campaign finance fraud.

In his first run for City Hall in 2021, Adams had relied heavily on taxpayer dollars, with the CFB approving more than $10 million in matching funds under the system that provides eligible candidates with $8 for every $1 raised from New York City residents, up to $250.

For the first round of funding in the 2025 campaign, Adams had submitted claims to the CFB for a total of about $4 million in new public money. On Monday the board rendered its verdict, denying Adams’ request and listing only one mayoral candidate, former comptroller Scott Stringer, as so far eligible. Stringer’s campaign was approved for $2 million in matching funds.

CFB Chairman Frederick Schaffer — noting that the board doesn’t usually explain its decisions publicly — noted the “unusual circumstances” surrounding Adams required an extra level of transparency.

“After thoroughly reviewing all available information, including the details of the indictment of Mayor Adams, the Board has determined there is reason to believe the Adams campaign has engaged in conduct detrimental to the matching funds program, in violation of law, including the Campaign Finance Act and Board Rules. His campaign also failed to provide documents and information requested by the Board. Accordingly, Mayor Adams’ campaign for reelection has failed to demonstrate eligibility for public funds payment at this time,” said Schaffer.

He added: “Our priority remains achieving an equitable and transparent democracy that is accountable to all New Yorkers.”

The board’s rejection of Adams’ request reflected its response in part to allegations spelled out in the federal indictment. Prosecutors in the office of the Manhattan U.S. attorney allege that during his 2021 campaign, Adams and his aides solicited and accepted tens of thousands of dollars in illegal straw donations that mask the true source of the money, including some from foreign entities aligned with the Turkish government.

And his 2021 campaign repeatedly ignored the CFB’s demands for explanations about hundreds of dubious donations, including explaining who paid for lavish fundraising events that the board considered as potentially illegal undocumented in-kind contributions that circumvented contribution limits.

A review by THE CITY found that in their preliminary examination of his 2021 contribution disclosures, the CFB had deemed as invalid nearly one-third of the contributions the campaign claimed were eligible for matching funds.

The Adams 2025 campaign counsel, Vito Pitta, said in a statement following the decision: “While today’s ruling by CFB to withhold matching funds at this time is disappointing, we will continue to work with the board to address any issues so that funds can be appropriately disbursed. The mayor’s campaign continues to have far more resources than his opponents’, and we are very confident we will have the support we need to spend the maximum amount allowable in the upcoming primary.”

Adams’ Options

The city’s campaign finance rules prohibit the release of matching funds to campaigns for a variety of reasons, including if the board finds the candidate had committed fraud or made material misrepresentations in its communications with CFB or “engaged in conduct detrimental to the program that is in violation of any other applicable law at any time in the course of your program participation, which may include previous election cycles.”

Art Chang, a former board member of CFB from 2009 to 2018 and mayoral candidate in 2021, applauded the board’s decision, saying based on his experience weighing requests like this, “At the moment, everyone should be assured that there is a preponderance of evidence that supports this decision.”

Councilmember Lincoln Restler (D-Brooklyn), who last month wrote to the board to demand that they cut off Adams from more taxpayer matching funds, called CFB’s ruling the “right and necessary decision to protect the integrity of our campaign finance system.”

Adams can appeal the board’s decision, but time is of the essence with a June primary just ahead. At a press briefing late Monday, the mayor made clear that he will try and get the CFB to change its position and declare his campaign eligible for matching funds going forward.

“The most important part of what CFB stated is, ‘At this time’,” he said, stating that Pitta as his campaign attorney is “going to work with CFB to answer any questions that they have. No matter what happens, we’re going to overcome every hurdle to get our message out.”

He did not address the CFB’s assertion that his campaign had failed to provide information and documents the board had requested, months after the board issued a critical audit of his 2021 campaign and after the campaign received six preliminary reviews of its filings from CFB staff that had questioned the validity of one-third of his matching funds claims in the 2025 campaign, seeking additional documentation.

The mayor could also choose to exit the matching funds program, allowing him to raise bigger individual donations up to $3,700. Matching fund contributions are capped at $2,100. He declined to respond to a question about making that switch at his Monday briefing.

Adams got a shot of potential good news when President-elect Donald Trump said Monday he is considering pardoning Adams, stating that he felt the mayor had been treated “unfairly” by the Department of Justice — an agency he has claimed mistreated him.

In response at his press briefing, the mayor — noting President Joe Biden’s comments to justify pardoning his son, Hunter — echoed the same talking points, stating, “I did nothing wrong. I should not have been charged. President Biden says the Department of Justice has been weaponized. Trump said that. I’m saying that.”

  #BriberyCharges, #CampaignFinance, #CampaignFraud, #CFB, #EricAdams, #FederalTrial, #MatchingFunds, #NewYorkCityPolitics, #PublicFunds, #Reelection, #ScottStringer