Politics
Adams' friend pleads guilty in straw donor scheme involving New York City mayor's 2021 campaign
A longtime friend of New York City Mayor Eric Adams pleaded guilty on Monday to charges related to a scheme to obtain tens of thousands in funds from the Democrat’s 2021 campaign.
Dwayne Montgomery, a former NYPD inspector, pleaded guilty to the alleged straw donor scheme, New York Daily News reported, citing a Manhattan District Attorney’s Office spokesperson.
Though details of the plea agreement were not immediately available, Adams was asked about Montgomery’s guilty plea during an unrelated press conference Monday.
“Dealing with the question around Dwayne Montgomery, the DA is handling that case,” Adams said, referring to Manhattan District Attorney Alvin Bragg.
NYC MAYOR BUILDS HEFTY LEGAL WAR CHEST TO BATTLE FBI INVESTIGATION
New York City Mayor Eric Adams speaks during media availability at City Hall on Jan. 2, 2024. Adams has not been accused of wrongdoing in a straw donor investigation by the Manhattan district attorney. (Barry Williams for New York Daily News/Tribune News Service via Getty Images)
“I think the DA clearly reported that there was nothing our campaign did that was a part of what was done wrong. And I say let the DA handle this issue, situation.”
Adams asserted a “level of scrutiny” his campaign staffers took in calling between 16,000-17,000 donors, informing them both verbally and in writing that contributions “had to be your money.”
“It was in writing. People had to read it before they signed the donor form or after contributing online. Then I added an additional layer of spending of thousands of dollars on a compliance attorney who matched signatures, who matched information, and made sure things were done with a level of scrutiny that deserved,” Adams explained. “And we returned back tens of thousands of donations that did not follow that muster. And so the campaign did its job. We did the review that we’re supposed to review. And I’ve always told you from the beginning, I’m confident that I know we did the internal scrutiny we’re supposed to do.”
The mayor has not been accused of wrongdoing in connection to the Manhattan district attorney’s probe.
Fox News Digital reached out to Bragg’s office for comment on Monday regarding Montgomery’s plea.
Two of Montgomery’s co-defendants, brothers Shahid and Yahya Mushtaq, pleaded guilty in October to participating in the scheme. As part of their agreement, the Mushtaqs would cooperate with Bragg’s investigators as their investigation in the scheme remained ongoing, according to the Daily News.
Other co-defendants in the case are Shamsuddin Riza, Millicent Redick, Ronald Peek, and Ecosafety Consultants, Inc.
Court documents allege that the co-defendants engaged with each other between August 2020 and November 2021 to fraudulently obtain tens of thousands of dollars in matching funds for Adams’ 2021 New York City mayoral campaign by submitting falsified campaign contribution forms to the New York City Campaign Finance Board.
Manhattan District Attorney Alvin Bragg’s office is investigating an alleged straw donor campaign scheme involving Eric Adams’ 2021 mayoral campaign. (Lev Radin/Pacific Press/LightRocket via Getty Images)
ADAMS’ OFFICE LASHES OUT AT FBI EMPLOYEE WHO MIGHT HAVE ‘IMPROPERLY LEAKED DETAILS’ OF NYC CORRUPTION PROBE
Prosecutors alleged it was part of the conspiracy for Montgomery, Riza, Peek and others to provide funds for and to reimburse straw donors, to coordinate the campaign contributions of the straw donors through fundraiser events, and to instruct other conspirators on how to structure and disguise straw donor contributions to avoid detection.
Meanwhile, Adams has built a hefty war chest over the past several months amid reports he is at the center of an ongoing FBI investigation.
Adams, who has clashed with the White House on President Biden’s immigration policies as New York City grapples with the influx of more than tens of thousands of migrants from the southern border, has so far not been publicly accused of any wrongdoing as the FBI continues its investigation into alleged corruption at City Hall to benefit the Turkish government.
Mayor Eric Adams attends Police Commissioner Edward Caban’s “State of the New York Police Department” address on Jan. 31, 2024. Adams has denied any wrongdoing amid corruption probes. (Lev Radin/Pacific Press/LightRocket via Getty Images)
In a statement in January, Adams’ longtime campaign compliance attorney confirmed that, “The Eric Adams Legal Defense Trust has drawn strong support in a short amount of time, raising more than $650,000 since it was formed just two months ago,” Fox News Digital previously reported.
The mayor started the legal defense trust in mid-November after the FBI searched the home of Adams’ chief campaign fundraiser, 25-year-old Brianna Suggs. Federal agents seized two laptop computers, three iPhones and a manila folder labeled “Eric Adams,” according to the New York Times.
The FBI raid prompted Adams to suddenly return from Washington, D.C., ahead of planned visits at the White House and Congress related to the migrant crisis’ impact on the Big Apple.
The bureau is probing whether Adams’ 2021 campaign conspired with the Turkish government and others to funnel money into its coffers. FBI agents also approached Adams directly after a Manhattan event later that month, seizing the mayor’s electronic devices, including at least two cellphones and an iPad, in carrying out a search warrant, the Times reported.
The FBI also searched the homes of Rana Abbasova, an aide to Adams at City Hall, and Cenk Öcal, a former Turkish Airlines executive who served on the mayor’s 2021 transition team, according to Daily News.
Politics
Spencer Pratt surges to runoff in LA mayor’s race after angry voters send message to Karen Bass
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Reality television personality Spencer Pratt appears on track to clear a key hurdle in Los Angeles’ mayoral race as he seeks to unseat incumbent Mayor Karen Bass in November.
Bass, who has led the city since 2022 amid a turbulent stretch rocked by her response to wildfires, advanced to a runoff after failing to secure a majority of the vote in Tuesday’s primary election. With no candidate surpassing the 50% threshold, the top two finishers will face off in a November runoff.
The anticipated runoff is a symbolic blow to Bass, who was endorsed by Gov. Gavin Newsom, D-Calif., and former Vice President Kamala Harris and has spent decades serving California in a series of elected Democratic offices.
Pratt, a first-time candidate known for the MTV reality show “The Hills,” was running in second place as of Wednesday morning.
Los Angeles Mayor Karen Bass attends the Women for Bass Phone bank event in the Baldwin Hills area of Los Angeles on June 1, 2026. (Louise Barnsley/Splash for Fox News Digital)
REALITY TV STAR SPENCER PRATT TESTS LA VOTERS’ APPETITE FOR POLITICAL OUTSIDER
“Obviously, God wanted five more months of me exposing the failures of our mayor,” Pratt gloated to reporters as the returns came in Tuesday evening.
Pratt has relentlessly hammered Bass on issues that have long plagued the city, including fire recovery, street homelessness and crime. The insurgent candidate holds Bass personally responsible for devastating wildfires that destroyed more than 18,000 structures in the city, including his Pacific Palisades home.
Pratt’s surge appears to have shut out Los Angeles City Council member Nithya Raman, a former ally of Bass who challenged the incumbent from the left and was once viewed as a threat to her bid for a second term. Raman is a member of the Democratic Socialists of America and has argued for steering the city in a more progressive direction.
Raman has not yet conceded despite running well behind Bass and Pratt as of Wednesday morning.
Pratt, a registered Republican, faces an uphill battle to defeat Bass in November if he advances to the runoff election.
Less than 20% of voters in the heavily Democratic city identify with the GOP, though Los Angeles’ mayoral contest is officially nonpartisan.
Media personality and independent candidate Spencer Pratt, left, pictured alongside LA mayor Karen Bass, right. (Robert Gauthier/Los Angeles Times via Getty Images; Justin Sullivan/Getty Images)
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Rep. Darrell Issa, R-Calif., who represents a San Diego-anchored seat, told Fox News Digital that Pratt has won a following in the mayoral contest due to widespread voter discontent with Bass’ leadership.
“He’s catching fire among ardent historic Democrat voters because Karen Bass has been so ineffective,” Issa said in an interview. “And every time she opens her mouth, she’s talking about more of the same to people who have seen their streets, both crime-ridden and in fact … ineffectively managed.”
Bass, conversely, argues that her leadership is leading Los Angeles in the right direction.
“Los Angeles is at a turning point. After decades of rising homelessness, under-built housing and a shrinking police force, it’s Mayor Karen Bass who finally stepped up to change how City Hall works,” Bass’s website reads.
Los Angeles City Councilmember Nithya Raman appears likely to finish in third place, keeping her out of the November runoff. (Eric Thayer/Getty Images)
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“Homelessness is down, more housing is being built, and the LAPD is hiring new officers,” it also claims.
Fox News Digital’s Leo Briceno contributed reporting.
Politics
Early returns indicate L.A. County voters have doubts about healthcare sales tax measure
Los Angeles County’s half-cent sales tax to fund healthcare services was trailing Tuesday, with early returns showing a majority of voters rejecting the measure.
The tax — a half-penny of every dollar spent in the county — is meant to prop up local hospitals and clinics that are hemorrhaging funding after recent federal cuts.
The sales tax, which needs a simple majority to pass, would take effect Oct. 1 and last five years. Officials say it would pull in $1 billion annually to help plug the budget holes hitting local hospitals and clinics.
L.A. County health officials anticipate the One Big Beautiful Bill Act, signed into law by President Trump last summer, will slash more than $2 billion from the county’s health services budget within the next three years. Due to eligibility changes, the county will no longer be able to get reimbursements for many Californians who have lost Medi-Cal.
The measure was championed by a coalition of healthcare advocates called Restore Healthcare for Angelenos who warned that mass layoffs and emergency room closures could be imminent if new funding didn’t come fast. The Department of Public Health recently closed seven clinics — a grim sign, supporters said, of service cuts to come.
Voters haven’t rejected a sales tax hike since 2012, when a transportation measure fell just short with 66.1% support. It needed 66.7% to pass.
A majority of county supervisors had supported the new tax proposal, voting 4 to 1 this February to put it on the ballot. But the measure faced significant opposition from local cities, with opponents arguing the sales tax hike would unfairly burden the poorest county residents and encourage people to spend their dollars across the county line.
Supervisor Kathryn Barger, the board’s lone opponent of the tax, said she was concerned it was a “general” tax, meaning the money wouldn’t be earmarked for healthcare costs. Instead, she argued, politicians would have final say over how the money gets spent.
The supervisors have created a plan for spending the tax money, with the largest chunk of the money meant to cover the costs for patients without insurance. The measure also asked voters to sign off on a nine-member oversight committee.
The county currently has a base sales tax rate of 9.75%, and cities impose local taxes on top of that.
Politics
DOJ expands indictment against SPLC, alleging $4M secretly funneled to KKK and extremist groups
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The Department of Justice last month announced an indictment against the Southern Poverty Law Center (SPLC), alleging that the civil rights nonprofit defrauded donors by secretly paying informants associated with extremist organizations, including the Ku Klux Klan.
A federal grand jury in the Middle District of Alabama returned an 11-count indictment in April charging the SPLC with six counts of wire fraud, four counts of making false statements to a federally insured bank and one count of conspiracy to commit concealment money laundering, according to the Justice Department.
The superseding indictment retains those charges while expanding on the alleged misconduct.
According to the DOJ, the SPLC “secretly funneled” more than $3 million in donor funds between 2014 and 2023 to numerous individuals associated with extremist organizations, including the Ku Klux Klan, United Klans of America, the National Socialist Movement, participants in the Unite the Right rally and the Aryan Nations-affiliated Sadistic Souls Motorcycle Club.
NEO-NAZIS, ‘SADISTIC’ BIKERS AND CHARLOTTESVILLE ORGANIZER: 5 OF THE MOST SHOCKING SPLC INFORMANTS
The Southern Poverty Law Center has widespread influence in education. FILE: Acting Attorney General Todd Blanche, left, and SPLC interim President and CEO Bryan Fair are shown in a split image as the Justice Department pursues charges against the Southern Poverty Law Center. (Nathan Posner/Anadolu via Getty Images; USA TODAY Network via Imagn Images)
The original indictment alleged approximately $3 million in payments between 2014 and 2023.
“The SPLC’s paid informants (‘field sources’) engaged in the active promotion of racist groups at the same time that the SPLC was denouncing the same groups on its website,” the indictment states.
Prosecutors further allege the SPLC opened bank accounts tied to fictitious entities in order to conceal donor funds that were allegedly routed to confidential sources.
MIKE DAVIS: SOUTHERN POVERTY LAW CENTER: A TALE OF A RACISM SCAM
The Southern Poverty Law Center (SPLC) building seen in March 2020 in Montgomery, Alabama. (Barry Lewis/InPictures via Getty Images)
According to the indictment, the SPLC began operating a covert informant network in the 1980s, and between 2014 and 2023 allegedly paid those sources in a clandestine manner.
The DOJ alleges an SPLC employee instead encouraged the pair to remain involved and offered them a monthly salary of $1,200.
The two subsequently agreed to remain in the organization, according to the indictment.
DR. BEN CARSON: I KNOW HOW BAD THE SPLC WAS, IT CAME AFTER ME AND PUT ME AT RISK
Acting Attorney General Todd Blanche spoke during a press conference alongside FBI Director Kash Patel at the Department of Justice on April 21, 2026, in Washington, D.C., following the indictment of the Southern Poverty Law Center. (Nathan Posner/Anadolu via Getty Images)
Prosecutors allege an SPLC employee instructed the individuals to claim they worked for a company called Rare Books and helped college students with research and writing assignments if anyone questioned the source of their income.
The indictment alleges donor funds were used to pay both individuals through SPLC accounts.
According to prosecutors, the pair were also reimbursed for expenses related to Ku Klux Klan activities, including cross-burning events and associated costs such as wood and fuel.
One of the individuals is also accused of recruiting new members using donor-funded payments. The indictment further alleges the SPLC knew donor funds were used to purchase materials for Ku Klux Klan garments.
In a statement to Fox News Digital, attorney Abbe Lowell, who represents the SPLC, denied the allegations.
A composite image shows Acting Attorney General Todd Blanche overlaid on photographs of the Department of Justice and FBI headquarters in Washington, D.C. (Valerie Plesch/Bloomberg via Getty Images; Graeme Sloan/Bloomberg via Getty Images)
“This apparent superseding indictment attempts to shore up the flaws in the initial charges, but it changes nothing,” Lowell said.
“The SPLC did not lie to its donors, it did not mislead banks it did business with, and its informant program prevented violence and saved lives,” he continued.
“It appears the Justice Department shared the indictment with media before it was unsealed by the court – another example of the government’s troubling handling of this case.”
“We will be addressing these irregularities with the court and look forward to presenting the truth at trial,” he added.
NONPROFIT REVENUE TOTALS SURGE AMID GROWING SCRUTINY AFTER MAJOR FRAUD CASES
SPLC interim President and CEO Bryan Fair speaks during a wreath-laying ceremony at the Southern Poverty Law Center Civil Rights Memorial in Montgomery, Ala., on March 5, 2026. (Jake Crandall/Advertiser / USA TODAY NETWORK via Imagn Images)
The superseding indictment also notes that the SPLC’s reported revenue increased from roughly $38.7 million in 2010 to more than $129 million in 2023, an increase of approximately 233%.
According to the filing, the organization’s net assets grew from approximately $238 million to nearly $787 million during the same period.
The SPLC is a longtime nonprofit organization that says it combats white supremacy and extremism through research, reporting and monitoring efforts intended to assist law enforcement and the public.
During a news conference announcing the original indictment, Acting Attorney General Todd Blanche alleged the SPLC paid members of extremist groups so it could generate “work product” documenting their activities.
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“To that end, [SPLC] was doing the exact opposite of what it told its donors it was doing – not dismantling extremism but funding it,” Blanche said.
Fox News Digital’s Alexandra Koch, David Spunt, Jake Gibson and Alec Schemmel contributed to this report.
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