New York City Mayor Eric Adams' campaign funds called into question

NEW YORK (WABC) -- The recent indictment of Mayor Eric Adams has brought millions of dollars of taxpayer funds into question -- money he used to help become mayor in the first place. They're funds some City Council members say the mayor should now be required to pay back.

Adams received $10 million in taxpayer dollars to help pay for his first mayoral campaign in 2021.

That's because the city has what is called a Matching Funds Program. For every dollar donated by a New York City resident, the city matches it with another $8 in taxpayer funds. So a $250 donation quickly turns into $2,000. It's a way to level the playing field for everyday New Yorkers that don't have rich corporate backers to run for office.

But here's the issue.

The federal indictment claims Adams accepted some illegal donations from foreign donors and then used those donations to "steal" public tax dollars from the Matching Funds Program. They are allegations the mayor has repeatedly denied.

"It's important that there will be real accountability here," said NYC Councilmember Lincoln Restler, who is chair of the city's Committee on Governmental Operations.

Restler wants the New York City Campaign Finance Board, which controls the funds, to require Adams to give it all back and to prevent him from getting new money for next year's campaign. It's money that will start to be handed out in December.

"Mayor Adams has proven that he does not deserve taxpayer dollars, matching funds to run his campaign and I hope the CFB will do the right thing and hold him accountable," said Restler.

Meanwhile, the mayor hasn't tied up financial loose ends from his last campaign.

Through the Freedom of Information Act, Eyewitness News obtained the finance board's draft audit of the mayor's 2021 campaign expenses that was issued in May. The draft audit shows Adams' campaign failed to document more than $2 million in expenses. The board has requested more documents involving expenses ranging from TV ads, to consulting contracts to car repairs, tolls and tickets.

The mayor's attorney has until the end of November to respond to the draft audit.

"My concern is about right and wrong, my concern is about protecting the integrity of our campaign finance system and that's why we need to ensure Mayor Adams is held accountable," said Restler.

The Chair of the Finance Board released a statement after the indictment that says in part:

"While the mayor is presumed innocent until proven guilty and deserves due process, the Board will nonetheless review all relevant information, including but not limited to the indictment, in order to uphold our city's campaign finance rules and protect taxpayer dollars."

Eyewitness News reached out to the mayor's campaign attorney numerous times over the last week and he hasn't responded to requests for comments. The attorney has said publicly the campaign followed all rules and will continue to in the future.

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