Construction Contractor Pleads Guilty in NYC Mayor Campaign Donation Scheme

Shamsuddin Riza, a construction contractor, pleaded guilty on Thursday to conspiring to make illegal campaign donations to New York City Mayor Eric Adams' 2021 campaign through a straw donor scheme. Riza admitted to funneling illegal contributions to the Adams campaign, with the hope that it would help his firm land lucrative city contracts once Adams became mayor.

According to prosecutors, Riza and co-defendant Dwayne Montgomery allegedly recruited straw donors to donate to Adams' campaign in order to work around individual contribution limits. The donations were later reimbursed by the defendants. The scheme allegedly took advantage of the city's matching funds program, which would provide an eight to one match from the New York City Campaign Finance Board for the first $250 donated to a political campaign by a city resident.

Riza is the fourth defendant to plead guilty after being charged by the Manhattan District Attorney's office for facilitating the straw donor scheme. As part of his plea deal, Riza will be sentenced to three years of probation and is prohibited from hosting fundraisers or delivering contributions to any political candidates for three years.

Why this matters: The case highlights the ongoing issue of illegal campaign finance practices and the potential for corruption in local politics. It also raises questions about the effectiveness of campaign finance regulations and oversight in preventing such schemes.

Neither Mayor Adams nor his campaign were implicated in or accused of knowing about the scheme. A City Hall spokesperson said Adams never discussed city business with the defendants. "My campaign and I did everything in accordance with the law," Adams said in a statement. "I have no knowledge of what anyone may have done that was inappropriate."

Key Takeaways

• Construction contractor Shamsuddin Riza pleaded guilty to illegal campaign donations to NYC Mayor Eric Adams.
• Riza and co-defendant recruited straw donors to circumvent contribution limits, exploiting the city's matching funds program.
• Riza is the fourth defendant to plead guilty in the straw donor scheme case.
• As part of the plea deal, Riza will receive 3 years of probation and is banned from hosting fundraisers.
• Neither Mayor Adams nor his campaign were implicated in or accused of knowing about the scheme.