New York City Mayor Adams, who is running for re-election, was recently denied over $4 million in matching funds by the Campaign Finance Board (CFB) this week due to facing federal charges and allegations of violating campaign finance regulations. Reports indicate that the CFB is also considering recovering the $10 million in matching funds that Adams received during his 2021 campaign.
According to the New York Daily News, Adams is likely to be deemed in “breach of certification” by the CFB, facing the harshest penalties and potentially having the previously issued matching funds reclaimed. The Daily News obtained a copy of the letter sent to Adams’ campaign team by the CFB on December 18 under the Freedom of Information Law (FOIL). In the letter, CFB audit director Danielle Willemin wrote that the federal charges against Adams suggest that he is accused of fundraising fraudulently through telecommunication schemes, illegally soliciting foreign donations, and deceiving public matching funds for the 2021 and 2025 campaign activities.
The letter pointed out that if fraud or significant misrepresentations are found in the campaign activities, regardless of legality, it may be deemed a “breach of certification” and disqualify them from receiving public matching funds.
A candidate found in breach of certification not only loses eligibility for any matching funds but may also be required to repay previously received matching funds.
Adams’ 2021 campaign received approximately $10 million in public matching funds. The federal prosecutor’s office in Manhattan stated in Adams’ indictment that this $10 million should all be considered fraudulently obtained, as it includes illegal foreign contributions.