UPDATED: 15 JUN 2023 04:32 PM EST
NEW YORK — When Frank Carone joined the administration of Mayor Eric Adams as chief of staff, the well-known political fixer and Brooklyn attorney announced he would be divesting from his law firm, Abrams Fensterman, and setting up a series of ethical guardrails. The idea was to wall off any potential conflicts of interest as he took the helm of the same government bureaucracy he previously helped clients navigate.
On Thursday, Carone announced to friends and clients he will be rejoining his old firm on an of counsel basis.
“The past year has been exhilarating. I’ve had the opportunity to manage, under Mayor Adams’ leadership, the greatest city in the world — dealing with the host of legal and political challenges of managing a $104 billion budget and 325,000 government employees,” Carone wrote in a note reviewed by POLITICO. “While I enjoyed every minute of my public service, I’m excited to return to working with clients like you, who have trusted me to advise and represent them for so many years.”
The announcement comes six months after Carone unveiled his new global consulting firm called Oaktree Solutions, which boasted high-profile clients like House Minority Leader Hakeem Jeffries, Northwell Health and luxe eatery Cipriani. Carone has also been helping real estate titan SL Green with its bid for a casino — a process that requires navigating a thicket of government officials and regulations. Separately, he is expected to chair the mayor's reelection campaign.
The New York Daily News first reported that Carone would be rejoining his prior firm.
When he launched Oaktree, Carone pledged not to lobby City Hall, though he said that some of his employees — which include a former city commissioner and former member of Congress — might do so once a one-year ban expired.
In an interview, Carone said his new role at Abrams Fensterman will be dramatically different than when he left. While he was previously a partner and a member of the executive board, this time around he will not be employed by the company.
“I am my own lawyer, but I am putting my shingle there for the purposes of offering strategic advice for any of their clients who need it,” he said, noting that he will likely be taking on similar roles at other law firms who have different focuses.
And should any of Carone’s other clients need legal representation — especially in the fields of matrimonial, health care, transportation or appellate law — he will refer them to the firm.
Carone helped build Abrams Fensterman into a formidable practice while fostering a network of political relationships during his time as legal chair of the Brooklyn Democratic Party. The return to his former company marks a dramatic shift compared to the waning days of 2021.
At the time, the Brooklyn attorney had been a key figure in the mayor's transition team. After POLITICO reported Carone was being considered for the chief of staff role, good government groups raised issues about the potential for a conflict of interest: The firm boasts a host of clients whose businesses depend on city government, and Carone himself was known as someone who could offer strategic advice and help goad the gears of bureaucracy into action.
In response, Carone pledged not to deal with any matters involving a former client. The day before Adams took office, he signed an agreement that completely separated him financially from Abrams Fensterman and nixed his name from the company.
“I went through all that trouble on purpose, and whether the firm does well or the firm just disappears in bankruptcy, it’s of no moment to me,” Carone told POLITICO at the time. “That’s a previous life. I still have fond relationships with friends, but that’s a different world I live in now.”
On Thursday, he said his decision to be counsel to Abrams Fensterman has changed none of those steps.
“That stays the same,” he said. “I am still divested. I am not a partner. And I am no longer a member of the firm.”
In a statement, the law firm welcomed Carone back with open arms.
"Frank is a brilliant attorney and strategist, and he will bring tremendous value to our clients and the firm going forward," said George Arzt, spokesperson for the company.
