Eric Adams' Close Associate Indicted in Insurance Fraud Scandal

Unraveling the complex web of connections and potential conflicts of interest

Apr. 11, 2026 at 2:12am

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A dimly lit, cinematic painting of a solitary office desk with a laptop, a stack of papers, and a desk lamp casting warm, diagonal shadows, conceptually representing the investigation into political and business relationships.As the web of political and business connections unravels, the investigation into potential conflicts of interest and corruption casts a somber, cinematic shadow over the city.NYC Today

The recent indictment of Eric Adams' close associate, Zhan Petrosyants, has sparked a series of intriguing questions and revelations. Petrosyants, a former friend of the ex-mayor, has been accused of operating companies that exploited New York's no-fault insurance system through fraudulent activities. The case sheds light on the intricate web of relationships and potential conflicts of interest involving Adams, Petrosyants, and other individuals and organizations.

Why it matters

This case showcases the importance of transparency and accountability in political and business relationships. It raises questions about the effectiveness of legal consequences and whether they serve as a deterrent for repeated offenses. Additionally, the connections between Petrosyants, Adams' former chief of staff Frank Carone, and a law firm associated with Carone further complicate the story and highlight the need to scrutinize these types of associations.

The details

Zhan Petrosyants, a former close friend of ex-mayor Eric Adams, has been indicted by federal prosecutors for allegedly operating companies that exploited New York's no-fault insurance system through fraudulent activities. Petrosyants has a history of similar charges, having pleaded guilty to insurance fraud in 2014. The indictment also reveals that attorneys for insurance giant GEICO have been involved in a separate lawsuit, seeking information from Petrosyants about a funding company accused of participating in the fraud scheme. Additionally, the funding company has ties to Abrams Fensterman, a law firm closely associated with Adams' former chief of staff, Frank Carone, who is reportedly under investigation by the U.S. Attorney for the Eastern District of New York.

  • Zhan Petrosyants pleaded guilty to insurance fraud charges in 2014.
  • Petrosyants has been indicted by federal prosecutors in 2026.

The players

Zhan Petrosyants

A former close friend of ex-mayor Eric Adams who has been indicted for operating companies that allegedly exploited New York's no-fault insurance system through fraudulent activities. Petrosyants has a history of similar charges, having pleaded guilty to insurance fraud in 2014.

Eric Adams

The former mayor of New York City, who had a close relationship with Zhan Petrosyants, frequently visiting Petrosyants' restaurants and staying at a condo rented by Petrosyants' brothers.

Frank Carone

The former chief of staff for Eric Adams, who is reportedly under investigation by the U.S. Attorney for the Eastern District of New York for his lobbying interests.

Abrams Fensterman

A law firm closely associated with Frank Carone, Adams' former chief of staff, which has ties to the funding company accused of participating in the insurance fraud scheme.

GEICO

An insurance giant that has been involved in a separate lawsuit, attempting to track down Zhan Petrosyants for information about a funding company accused of participating in the fraud scheme.

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What’s next

The U.S. Attorney for the Eastern District of New York is expected to continue its investigation into Frank Carone's lobbying interests, which could potentially uncover further details about the connections between the various individuals and organizations involved in this case.

The takeaway

This case highlights the need for greater scrutiny and transparency in the relationships between public officials, their associates, and the business entities they interact with. It serves as a reminder that even seemingly casual connections can have significant implications, and that the public deserves to have confidence in the integrity of their political and business leaders.