A retired inspector who worked for and was associated with Mayor Eric Adams when they were both members of the New York Police Department was charged Friday with conspiring with four construction executives and a bookkeeper to funnel illegal donations. of Mr. Adams’ 2021 campaign.
The 27-count indictment accuses the defendants, some of whom have sophisticated knowledge of campaign finance law, of attempting to conceal the origin of thousands of dollars in donations by making them in the names of colleagues and relatives.
The indictment, announced by the Manhattan district attorney, Alvin L. Bragg, said the group sought influence and perhaps city contracts, but it did not accuse Mr. Adams or his campaign of wrongdoing. conduct and did not suggest that he was aware of the plot.
Mr. Bragg said in a statement that the defendants created “a deliberate scheme to game the system in an apparent attempt to gain power.”
In addition to retired police inspector Dwayne Montgomery, the accused are Shamsuddin Riza, Millicent Redick, Ronald Peek and the brothers Yahya and Shahid Mushtaq.
The indictment describes the Mushtaqs as principals of EcoSafety Consultants, a construction firm also charged in the indictment. Mr. Riza, the operator of a second construction firm charged separately, also worked for EcoSafety, the district attorney’s office said. Ms. Redick works for him as a bookkeeper. Mr. Peek works for another construction safety firm.
EcoSafety has been a subcontractor to the city since April 2021, according to records maintained by the city comptroller’s Office. The city paid the company $470,000 during that time.
Scott Grauman, a lawyer for Shahid Mushtaq and EcoSafety, noted that his clients pleaded not guilty at an arraignment on Friday. “We will vigorously defend against the allegations,” he added.
Yahya Mushtaq has not been arraigned, but Mr. Grauman, who is also representing him, said he too will plead not guilty and vigorously fight the charges.
Alexei Grosshtern, a lawyer for Ms. Redick, the bookkeeper, said his client only knew one of the other defendants, Mr. Riza. Ms. Redick, Mr. Grosshtern added, unaware of any plot and surprised to be arrested.
A lawyer for Mr. Riza could not immediately be reached for comment.
Mr. Montgomery is related by marriage to Mr. Riza and former partner of Mr. Adams.
“Montgomery is a colleague of the mayor in the Police Department who knows him socially and works on criminal justice issues,” said Evan Thies, a spokesman for the 2021 mayoral campaign. and criminal justice advocates hosted events for the mayor during the campaign.”
Mr. Montgomery’s lawyer, Anthony Ricco, said his client had no business in the city and had not asked Mr. Adams, a friend of 35 years, to take any action on his behalf.
“Dwayne Montgomery is a New York City hero, not a manufactured hero,” Mr. Ricco said, pointing to his client’s three decades of service with the Police Department and his commitment to the Harlem neighborhood where he grew up and where he was respected by the community.
After Mr. Montgomery retired from the department in 2009, he was chief executive of a security company, Overwatch Services, for five years. A spokesman for City Hall said that Philip Banks III, the deputy mayor of Mr. Adams for public safety, bought the company from Mr. Montgomery circa 2015.
Winnie Greco, an adviser to the mayor, serves with Mr. Montgomery on the Overwatch Services management team, according to an archived copy of the company’s website. Ms. Greco declined to comment.
The biography of Mr. Montgomery on the archived web page of a separate security company, Public Safety Reimagined, which he founded last year, says he is also the director of integrity for Local 237 of the International Brotherhood of Teamsters, which represents some city workers. .
New York City’s complex campaign finance law is at the center of the conduct detailed in court papers. To reduce the influence of big donors and to help less-connected candidates rise, New York City will match the first $250 of a resident’s donation eight to one.
The defendants are accused of trying to mask large donations by funneling them through so-called straw donors. That enabled the campaign to raise more funds in the city, and potentially increase the influence of the accused in the future mayor.
It is not clear how much the scheme has cost the public.
On Friday, Mr. Thies thanked the prosecutors for “their hard work on behalf of the taxpayers.”
“The campaign has always held itself to the highest standards and we will never condone these actions,” said Mr. Thies. “The campaign will of course work with the DA’s office, the Campaign Finance Board and any relevant authorities.”
The defendants held two fund-raisers for Mr. Adams, one in August 2020 and the other a year ago. The second occurred after Mr. Adams won the Democratic primary, effectively securing his mayoralty.
At each fund-raiser, according to prosecutors, the defendants recruited straw donors and then paid them.
“I will put the money for you,” texted Mr. Riza of a relative, according to the indictment.
The defendants seem to have known that they were engaging in dangerous behavior.
“You have to be careful because you have to make sure that you do it through workers that they trust, that’s not talking, because remember that a man went to jail for that,” said Mr. Peek Mr. Riza at one time, according to the indictment.
The defendants appeared hopeful that their donations would help them secure contracts for a development project. In July 2021, Mr. Riza forwarded an email advertising the project to Mr. Montgomery.
“FYI! This is what I want, Safety, Drywall, and Security one project but we can all eat!” Written by Mr. Riza, the indictment said.
It is not clear if Mr. Adams shows up at fund-raisers. But Mr. Montgomery told Mr. Riza that the mayor would be more likely to do so if they could promise that a certain amount of money would be raised, a practice not uncommon among politicians.
Mr. Adams “didn’t want to do anything if he didn’t get 25 Gs,” Mr. Montgomery said, according to the indictment.
Mr. Adams’ campaign said Mr. Montgomery appeared to be referring to the usual amount expected by hosts for a general election fund-raiser.
In a July 2021 phone call, Mr. Riza told Mr. Peek: “I know what the campaign finance laws are. Make sure it’s $1,000 in your name and $1,000 in someone else’s name because the matching funds are eight to one, so $2,000 is $16,000.”