On a humid Friday morning in Manhattan, the courtroom was tense as Erden Arkan, a 76-year-old Brooklyn construction magnate, stood before federal Judge Dale Ho to receive his sentence. Arkan, owner of Williamsburg-based KSK Construction and a well-known figure in New York’s Turkish community, had pleaded guilty to conspiring with a Turkish government official to funnel illegal campaign contributions into New York City Mayor Eric Adams’ 2021 campaign. The sentencing marked the latest chapter in a saga that has entwined city politics, international diplomacy, and the integrity of New York’s public campaign finance system.
Judge Ho, in his remarks, acknowledged Arkan’s immigrant background and prior clean record, telling him, “I hope that you don’t let this one mistake define you.” Yet, Ho was clear that Arkan’s offenses were far from trivial. “It is not a victimless crime,” Ho stated, emphasizing that such actions “violate the public trust in a way that breeds cynicism,” as reported by New York Daily News.
Arkan’s sentence—one year of probation, a $9,500 fine, and $18,000 in restitution—fell below the six months of prison time suggested by federal guidelines. Both prosecutors and the federal probation officer agreed that incarceration wasn’t warranted, given Arkan’s age and otherwise spotless record. Still, the financial penalties were significant, totaling more than $27,000. During the hearing, Arkan’s voice trembled with emotion as he addressed the court. “I feel profound sadness for the choices I made,” he said. “I’m sincerely sorry to the New York City taxpayers … I also apologize to this court.”
According to NBC New York, the origins of the case stretch back to May 2021, when Arkan hosted a fundraiser at his construction company’s headquarters. At least 10 employees donated between $1,200 and $1,500 each to Adams’ campaign. Prosecutors say Arkan later reimbursed them, making the donations illegal straw contributions. These funds were then submitted for the city’s generous public matching funds program, unlocking an additional $18,000 in taxpayer money for Adams’ campaign. The total haul from the event reached approximately $14,000 from 11 individuals, according to court records.
The gravity of the scheme was compounded by its alleged international dimension. Prosecutors contend that Arkan acted “at the behest” of Reyhan Ozgur, the Turkish government’s former consul general in New York. In court papers, Ozgur is referred to simply as “Turkish Official.” The indictment against Adams, which was ultimately dismissed, alleged that the mayor’s campaign knowingly solicited and accepted illegal donations and bribes, primarily from Turkish government operatives, in exchange for political favors, such as assistance with city permits and the opening of a Turkish diplomatic building without proper fire inspections.
The legal drama took an unexpected turn earlier this year when federal prosecutors, under pressure from President Donald Trump’s administration, dropped the criminal case against Adams. The Justice Department argued that the prosecution was hindering the Democratic mayor’s ability to assist with the Republican administration’s immigration crackdown. Judge Ho, who presided over both the Adams and Arkan cases, dismissed the mayor’s charges in April. In a written opinion, he described the rationale for dismissal as “troubling” and said it “smacks of a bargain,” suggesting the deal was more about politics than justice. Adams, for his part, has consistently denied any wrongdoing. “I have not committed a crime,” he told Judge Ho at a February hearing.
Despite the dismissal of Adams’ case, the fallout continues. Arkan’s defense attorney, Jonathan Rosen, blasted the government for pursuing his client while letting the mayor walk free. “Nothing can normalize this unfair exercise of prosecutorial discretion,” Rosen argued in court. He also noted that Arkan did not coordinate his straw donor scheme with the Turkish government, explaining instead that his client was pressured by Adams’ campaign to raise at least $10,000 in order to host the fundraiser. Failing to find enough individual donors, Arkan resorted to reimbursing his employees.
In a letter submitted to the court, Joseph Gallagher, general counsel for the city’s Campaign Finance Board (CFB), wrote that Arkan’s crimes “wasted taxpayer dollars” and “deteriorated the integrity” of the public matching funds program. Gallagher also acknowledged that Arkan has been cooperating with the CFB’s ongoing investigation into Adams’ 2021 and 2025 campaigns. As a result of these probes, the Board has denied Adams millions of dollars in public matching funds for his 2025 reelection effort, maintaining that the mayor “violated the law” despite the dismissal of his federal case. Adams, now running for reelection as an independent after skipping the June Democratic primary, is contesting the denial.
Arkan’s sentencing is just one piece of a broader pattern of campaign finance violations linked to Adams’ political circle. Earlier this month, Mohamed Bahi, a former City Hall aide and Adams’ chief liaison to the Muslim community, pleaded guilty to orchestrating a similar straw donor scheme. Bahi admitted to soliciting donations from employees of another Brooklyn construction company during a December 2020 fundraiser and is expected to be sentenced later this fall.
The ongoing investigations and prosecutions have cast a long shadow over New York City’s campaign finance system, which is designed to amplify the voices of small donors and reduce the influence of big money in politics. The matching funds program, while generous, is highly vulnerable to abuse if campaigns or their allies seek to game the system. As Judge Ho pointedly remarked, such crimes “breed cynicism” and erode public trust.
Meanwhile, the political implications are hard to ignore. The decision by the Trump administration to drop the case against Adams, while allowing prosecutions of his associates to proceed, has fueled debate about the intersection of law enforcement and political strategy. Arkan’s attorney and others have questioned whether justice was truly served—or if the legal process was manipulated to serve broader political goals.
For Arkan, the consequences are both personal and public. In his final remarks to the court, he said, “I love this city. I dedicated my life to making it better. It pains me that I have harmed it.” Judge Ho, perhaps summing up the conflicted feelings of many New Yorkers, told Arkan that while his story exemplifies the American dream, his actions serve as a cautionary tale about the responsibilities that come with success.
As the city’s Campaign Finance Board continues its investigations and more sentencings loom, the case of Erden Arkan stands as a stark reminder of how campaign finance violations—no matter how complex or politically charged—can have real consequences for both individuals and the democratic processes they sought to influence.
