The latest financial disclosures from mayor Eric Adams’ campaign and his legal defense fund reveal that both have seen a precipitous drop in activity since federal charges were filed against him at the end of September. It is the latest in a string of bad news for New York City’s top politician, who has been forced to fill numerous vacancies after seven resignations from top officers in his City Hall.
The Eric Adams Legal Defense Trust, according to its latest filing with the City’s Conflicts of Interest Board, has only raised $92,500 over the last quarter, with only one donation of $1,000 coming in after the mayor was indicted on September 24th. In the previous quarter, the fund had raised $375,000. Also, the filing shows that the fund is in the red, as refunds of some $138,000 in donations have put it at least $43,000 underwater, this despite having raised around $1.8 million overall and spent $1.7 million over the past year.
Legal defense funds for elected officials were made legal by the New York City Council in 2019, allowing them to raise funds from private donors to cover legal fees. Part of the regulation surrounding these trusts involves the disclosure forms that the manager of Adams’ fund – his lawyer Vito Pitta – has been filing with the city, and also includes some guardrails. Individuals can donate a maximum of $5,000, and cannot have any business before the City at the time of their donation (a public “Doing Business Database” is available for this and other purposes). If they do, then they, as well as their spouses, are prohibited from donating. In January of this year, the local news outlet Hell Gate uncovered donations from spouses of people doing business with the City in the Eric Adams Legal Defense Trust’s public filings. Vito Pitta thanked them for spotting the questionable donations, and stated that upon review, donations that violate the rules would be returned.
Despite these regulations, a number of prominent New York magnates with well-known dealings before the City still donated to his fund legally, as the use of lobbying firms apparently creates enough distance for them to do so. Most notable of these is the Dolan family – owners Madison Square Garden and Radio City Music Hall, among other investments – which has donated at least $20,000 to the fund.
Pitta also runs Eric Adams’ mayoral campaign finances, which have entered a drought similar to that for his legal defense. Here too, the campaign has only recorded one donation since the mayor was charged, a gift of $250 from September 26th. Despite the slowdown, the mayor’s campaign still boasts $3 million in cash on hand, which puts him far ahead of other candidates. However, New York’s campaign finance board has already stated that they may deny him the City’s generous 8-to-1 matching funds program if they find that he has violated its rules. Adams has dismissed concerns about his campaign’s fundraising, stating that since he has technically reached the legal limit of funds raised for the primary season. However, experts disagree with this explanation, noting that campaigns typically start fundraising for the general election if they reach the limit, rather than slowing down.
Beyond these financial issues, the mayor is currently facing a serious crisis of confidence, as a recent poll has found that neatly 70% of New Yorkers think he should resign from office.
