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.
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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)
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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
Wyoming Supreme Court rules laws restricting abortion violate state constitution
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The Wyoming Supreme Court ruled on Tuesday that a pair of laws restricting abortion access violate the state constitution, including the country’s first explicit ban on abortion pills.
The court, in a 4-1 ruling, sided with the state’s only abortion clinic and others who had sued over the abortion bans passed since the U.S. Supreme Court overturned Roe v. Wade in 2022, which returned the power to make laws on abortion back to the states.
Despite Wyoming being one of the most conservative states, the ruling handed down by justices who were all appointed by Republican governors upheld every previous lower court ruling that the abortion bans violated the state constitution.
Wellspring Health Access in Casper, the abortion access advocacy group Chelsea’s Fund and four women, including two obstetricians, argued that the laws violated a state constitutional amendment affirming that competent adults have the right to make their own health care decisions.
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The Wyoming Supreme Court ruled that a pair of laws restricting abortion access violate the state constitution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Voters approved the constitutional amendment in 2012 in response to the federal Affordable Care Act, which is also known as Obamacare.
The justices in Wyoming found that the amendment was not written to apply to abortion but noted that it is not their job to “add words” to the state constitution.
“But lawmakers could ask Wyoming voters to consider a constitutional amendment that would more clearly address this issue,” the justices wrote.
Wellspring Health Access President Julie Burkhart said in a statement that the ruling upholds abortion as “essential health care” that should not be met with government interference.
“Our clinic will remain open and ready to provide compassionate reproductive health care, including abortions, and our patients in Wyoming will be able to obtain this care without having to travel out of state,” Burkhart said.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction and delayed its opening. A woman is serving a five-year prison sentence after she admitted to breaking in and lighting gasoline that she poured over the clinic floors.
Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction. (AP)
Attorneys representing the state had argued that abortion cannot violate the Wyoming constitution because it is not a form of health care.
Republican Gov. Mark Gordon expressed disappointment in the ruling and called on state lawmakers meeting later this winter to pass a constitutional amendment prohibiting abortion that residents could vote on this fall.
An amendment like that would require a two-thirds vote to be introduced as a nonbudget matter in the monthlong legislative session that will primarily address the state budget, although it would have significant support in the Republican-dominated legislature.
“This ruling may settle, for now, a legal question, but it does not settle the moral one, nor does it reflect where many Wyoming citizens stand, including myself. It is time for this issue to go before the people for a vote,” Gordon said in a statement.
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Gov. Mark Gordon expressed disappointment in the ruling. (Getty Images)
One of the laws overturned by the state’s high court attempted to ban abortion, but with exceptions in cases where it is needed to protect a pregnant woman’s life or in cases of rape or incest. The other law would have made Wyoming the only state to explicitly ban abortion pills, although other states have implemented de facto bans on abortion medication by broadly restricting abortion.
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Abortion has remained legal in the state since Teton County District Judge Melissa Owens blocked the bans while the lawsuit challenging the restrictions moved forward. Owens struck down the laws as unconstitutional in 2024.
Last year, Wyoming passed additional laws requiring abortion clinics to be licensed surgical centers and women to receive ultrasounds before having medication abortions. A judge in a separate lawsuit blocked those laws from taking effect while that case moves forward.
The Associated Press contributed to this report.
Politics
What Trump’s vow to withhold federal child-care funding means in California
SACRAMENTO — Gov. Gavin Newsom and other state Democratic leaders accused President Trump of unleashing a political vendetta after he announced plans to freeze roughly $10 billion in federal funding for child care and social services programs in California and four other Democrat-controlled states.
Trump justified the action in comments posted on his social media platform Truth Social, where he accused Newsom of widespread fraud. The governor’s office dismissed the accusation as “deranged.”
Trump’s announcement came amid a broader administration push to target Democratic-led states over alleged fraud in taxpayer-funded programs, following sweeping prosecutions in Minnesota. The U.S. Department of Health and Human Services confirmed the planned funding freeze, which was first reported by the New York Post.
California officials said they have received no formal notice and argued the president is using unsubstantiated claims to justify a move that could jeopardize child care and social services for low-income families.
How we got here
Trump posted on his social media site Truth Social on Tuesday that under Newsom, California is “more corrupt than Minnesota, if that’s possible???” In the post, Trump used a derogatory nickname for Newsom that has become popular with the governor’s critics, referring to him as “Newscum.”
“The Fraud Investigation of California has begun,” Trump wrote.
The president also retweeted a story by the New York Post that said his Department of Health and Human Services will freeze taxpayer funding from the Child Care Development Fund, the Temporary Assistance for Needy Families program, which is known as CalWORKS in California, and the Social Services Block Grant program. Health and Human Services said the affected states are California, Colorado, Illinois, Minnesota and New York.
“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said Andrew Nixon, a department spokesperson. “Under the Trump Administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”
The department announced last month that all 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund after a series of fraud schemes at Minnesota day-care centers run by Somali residents.
“The Trump Administration is using the moral guise of eliminating ‘fraud and abuse’ to undermine essential programs and punish families and children who depend on these services to survive, many of whom have no other options if this funding disappears,” Kristin McGuire, president of Young Invincibles, a young-adult nonprofit economic advocacy group, said in a statement. “This is yet another ideologically motivated attack on states that treats millions of families as pawns in a political game.”
California pushes back
Newsom’s office brushed off Trump’s post about fraud allegations, calling the president “a deranged, habitual liar whose relationship with reality ended years ago.” Newsom himself said he welcomes federal fraud investigations in the state, adding in an interview on MS NOW that aired Monday night: “Bring it on. … If he has some unique insight and information, I look forward to partnering with him. I can’t stand fraud.”
However, Newsom said cutting off funding hurts hardworking families who rely on the assistance.
“You want to support families? You believe in families? Then you believe in supporting child care and child-care workers in the workforce,” Newsom told MS NOW.
California has not been notified of any changes to federal child-care or social services funding. H.D. Palmer, a spokesperson for the Department of Finance, said the only indication from Washington that California’s child-care funding could be in jeopardy was the vague 5 a.m. post Tuesday by the president on Truth Social.
“The president tosses these social media missives in the same way Mardi Gras revelers throw beads on Bourbon Street — with zero regard for accuracy or precision,” Palmer said.
In the current state budget, Palmer said, California’s child-care spending is $7.3 billion, of which $2.2 billion is federal dollars. Newsom is set to unveil his budget proposal Friday for the fiscal year that begins July 1, which will mark the governor’s final spending plan before he terms out. Newsom has acknowledged that he is considering a 2028 bid for president, but has repeatedly brushed aside reporters’ questions about it, saying his focus remains on governing California.
Palmer said while details about the potential threat to federal child-care dollars remain unclear, what is known is that federal dollars are not like “a spigot that will be turned off by the end of the week.”
“There is no immediate cutoff that will happen,” Palmer said.
Since Trump took office, California has filed dozens of legal actions to block the president’s policy changes and funding cuts, and the state has prevailed in many of them.
What happened in Minnesota
Federal prosecutors say Minnesota has been hit by some of the largest fraud schemes involving state-run, federally funded programs in the country. Federal prosecutors estimate that as much as half of roughly $18 billion paid to 14 Minnesota programs since 2018 may be fraudulent, with providers accused of billing for services never delivered and diverting money for personal use.
The scale of the fraud has drawn national attention and fueled the Trump administration’s decision to freeze child-care funds while demanding additional safeguards before doling out money, moves that critics say risk harming families who rely on the programs. Gov. Tim Walz has ordered a third-party audit and appointed a director of program integrity. Amid the fallout, Walz announced he will not seek a third term.
Outrage over the fraud reached a fever pitch in the White House after a video posted online by an influencer purported to expose extensive fraud at Somali-run child-care centers in Minnesota. On Monday, that influencer, Nick Shirley, posted on the social media site X, “I ENDED TIM WALZ,” a claim that prompted calls from conservative activists to shift scrutiny to Newsom and California next.
Right-wing podcaster Benny Johnson posted on X that his team will be traveling to California next week to show “how criminal California fraud is robbing our nation blind.”
California officials have acknowledged fraud failures in the past, most notably at the Employment Development Department during the COVID-19 pandemic, when weakened safeguards led to billions of dollars in unemployment payments later deemed potentially fraudulent.
An independent state audit released last month found administrative vulnerabilities in some of California’s social services programs but stopped short of alleging widespread fraud or corruption. The California state auditor added the Department of Social Services to its high-risk list because of persistent errors in calculating CalFresh benefits, which provides food assistance to those in need — a measure of payment accuracy rather than criminal activity — warning that federal law changes could eventually force the state to absorb billions of dollars in additional costs if those errors are not reduced.
What’s at stake in California
The Trump administration’s plans to freeze federal child-care, welfare and social services funding would affect $7.3 billion in Temporary Assistance for Needy Families funding, $2.4 billion for child-care subsidies and more than $800 million for social services programs in the five states.
The move was quickly criticized as politically motivated because the targeted states were all Democrat-led.
“Trump is now illegally freezing childcare and other funding for working families, but only in blue states,” state Sen. Scott Wiener (D-San Francisco) said in a statement. “He says it’s because of ‘fraud,’ but it has nothing to do with fraud and everything to do with politics. Florida had the largest Medicaid fraud in U.S. history yet isn’t on this list.”
Added California Assembly Speaker Robert Rivas (D-Hollister): “It is unconscionable for Trump and Republicans to rip away billions of dollars that support child care and families in need, and this has nothing to do with fraud. California taxpayers pay for these programs — period — and Trump has no right to steal from our hard-working residents. We will continue to fight back.”
Times staff writer Daniel Miller contributed to this report.
Politics
Video: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
new video loaded: Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
transcript
transcript
Walz Drops Re-Election Bid as Minnesota Fraud Scandal Grows
Governor Tim Walz of Minnesota abandoned his re-election bid to focus on handling a scandal over fraud in social service programs that grew under his administration.
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“I’ve decided to step out of this race, and I’ll let others worry about the election while I focus on the work that’s in front of me for the next year.” “All right, so this is Quality Learing Center — meant to say Quality ‘Learning’ Center.” “Right now we have around 56 kids enrolled. If the children are not here, we mark absence.”
By Shawn Paik
January 6, 2026
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