6 CHARGED WITH FRAUD IN MAYORAL ELECTION
Straw donors aided Adams’ run but he’s not involved, say authorites
Six people were charged in Manhattan Friday with funneling tens of thousands of dollars in straw donations to Eric Adams’ 2021 campaign for mayor to boost their chances of reaping political favors when he took office.
The Manhattan district attorney unsealed indictments accusing former NYPD Inspector Dwayne Montgomery, Shamsuddin Riza, Millicent Redick, Ronald Peek, Yahya Mushtaq, Shahid Mushtaq and a Queens-based site-safety-management company that the Mushtaq brothers own, Ecosafety Consultants Inc., of structuring illegal campaign contributions to bloat donations to Adams’ campaign through the New York City Matching Funds Program.
“We allege a deliberate scheme to game the system in a blatant attempt to gain power. The indictment charges the defendants with subverting campaign finance laws by improperly structuring campaign contributions,” DA Alvin Bragg said.
“The New York City Campaign Finance Board program is meant to support our democracy and amplify the voices of New York City voters. When the integrity of that program is corrupted, all New Yorkers suffer.”
Mayor Adams has not been accused of any wrongdoing. A city official said he knows only one of the six people named in the indictment — the alleged ringleader, Montgomery — but said he has never had a meeting with any of the accused at City Hall and has not discussed business with any of them since becoming mayor.
Bragg’s office says Montgomery led the scheme from 2020 to 2021, hosting two fundraisers for Adams and enlisting his friends and relatives 23 times to scam the city program in which residents who donated $250 saw their donations matched by eight to one in public funds.
No more than $2,000 was permitted in contributions from individuals, and businesses competing for city contracts, like the company run by the Mushtaq brothers, where Riza also worked, could donate no more than $400.
The indictment notes that Montgomery represented to one of his conspirators that the mayor was aware of the fundraising efforts in a July 9, 2021, phone call with Riza, who owns a construction company.
“[The Candidate] said he doesn’t want to do anything if he doesn’t get 25 Gs,” Montgomery is quoted as saying in court documents.
Less than two weeks later, Riza forwarded Montgomery details about an upcoming construction project in Brooklyn that he wanted.
“FYI ! This is the one I want , Safety , Drywall , and Security one project but we all can eat ! Please show to him before Event it will start when he’s in office,” Riza wrote in the email dated July 21.
Eight days later, Riza directed an unnamed straw donor on how to carry out the fraud in profane recorded statements, the indictment details.
“I’ll put the money up for you. I’ll fill that motherf--er up, write 470 Lenox Avenue on that b---h, and submit the $250. And your sister will be the one that will be filling out that God damn postal money order.”
In response to Montgomery’s statements about Adams having knowledge of one of the fundraisers, a source from his 2021 campaign described it as an apparent reference to the standard amount expected of fundraiser hosts for the general election campaign.
A spokesman for the mayor’s 2021 campaign reiterated that Adams played no part in the scheme.
“There is no indication that the campaign or the mayor is involved in this case or under investigation,” Evan Thies said.
“The campaign always held itself to the highest standards and we would never tolerate these actions. The campaign will of course work with the DA’s office, the Campaign Finance Board and any relevant authorities.”
Montgomery is accused of recruiting straw donors to make contributions in
their names and later reimbursing them to the tune of $40,000, with each falsely certifying that they were the source of the funds.
The retired cop used a spreadsheet to keep track of who was enlisted to donate funds and trigger the matching donations, according to the charges, planning to use the donations as leverage with Adams’ office in possible future construction contracts requests.
In the lead-up to an August 2021 fundraiser in Sunnyside, Queens, that was organized by Riza and Montgomery, prosecutors say Riza contributed more than the $2,000 he was legally allowed to by getting his family and friends to falsify campaign contribution cards.
Riza, who also faces charges in a separate Manhattan case for a wide-ranging construction fraud scheme, is quoted in an Aug. 24, 2021, phone call advising Yahya Mushtaq on how to game the city’s matching public funds program.
“Alright, even though, even though it says on the flier if you do business with the City, the maximum you can donate is $400 ... what you want to do, alright, because we’re sponsoring the event, we’re going to do just like the white boys . ... You could use a straw man ... the principals are the ones that do business with the City,” Riza is quoted.
“Whoever’s on the LLC or the incorporation, those are the people that do business with the City. Anybody else is an employee, the employees don’t fall under that criteria.”
According to the charges, the Mushtaqs then purchased money orders to donate money in their employees’ names without them knowing.
“By using U.S. Postal Money Orders in a scheme to commit violations of campaign finance law, these individuals compromised the public’s trust in a fair election process,” said Daniel Brubaker, New York division inspector in charge for the U.S. Postal Inspection Service.
“Postal Inspectors will not tolerate individuals using postal products in the furtherance of their crimes.”
Montgomery, 64, Riza, 70, Redick, 77, and Shahid Mushtaq, 29, pleaded not guilty to conspiracy, attempted grand larceny, offering a false instrument for filing and related charges at their Manhattan Supreme Court arraignment and were released on their own recognizance. Their lawyers could not be reached for comment.
Peek and Yahya Mushtaq will appear in court at a later date.