(MENAFN- Live Mint) New York City mayoral frontrunner Zohran Mamdani is facing fresh legal turbulence after a campaign finance watchdog accused him of accepting illegal contributions from foreign donors - a move that could upend his fast-rising political career, New York Post reported.

The New York Mayoral elections are scheduled to be held on 4 November.

The Coolidge Reagan Foundation, a conservative-leaning campaign finance group, on Tuesday filed two criminal referrals with the US Department of Justice's Criminal Division and the Manhattan District Attorney's office, urging investigations into what it described as a“sustained pattern” of foreign money flowing into Mamdani's campaign.

What are the allegations against Zohran Mamdani?

According to the foundation, Zohran Mamdani - a self-described democratic socialist and son of filmmaker Mira Nair - allegedly accepted nearly $13,000 in contributions from at least 170 donors with addresses outside the United States, including one from his mother-in-law in Dubai.

“These are not isolated incidents or clerical errors,” NYP quoted Dan Backer, a national campaign finance lawyer and president of the Coolidge Reagan Foundation.

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“This was a sustained pattern of foreign money flowing into a New York City mayoral race which is a clear violation of both federal law and New York City campaign finance rules,” Backer said in a statement.

“Mamdani's campaign was on notice for months that it was accepting illegal foreign contributions, and yet it did nothing meaningful to stop it.”

The referrals allege potential violations of both the Federal Election Campaign Act (FECA) and the New York Election Code, which strictly prohibit political campaigns from accepting contributions from foreign nationals.

Who filed the complaint against Mamdani - and why does it matter?

The Coolidge Reagan Foundatio has a history of targeting high-profile Democrats with campaign finance complaints. In the past, it has filed similar actions against Rep. Alexandria Ocasio-Cortez, Hillary Clinton's presidential campaign, and the Democratic National Committee.

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In its latest filings, the foundation said Mamdani's campaign demonstrated a“systematic failure to comply” with election laws.

“The law is crystal clear that foreign nationals may not participate in American elections, and that includes making contributions,” Backer added.

“Yet Mamdani's campaign repeatedly accepted donations from individual abroad, some even tied to regions and individuals openly sympathetic to hostile actors. Whether through negligence or intent, this conduct undermines the integrity of the democratic process.”

Violations of the FECA can carry heavy fines and potential criminal penalties, including imprisonment, if prosecutors prove a candidate“knowingly accepted” illegal foreign donations.

How has Mamdani's campaign responded?

Zohran Mamdani's campaign denied any deliberate wrongdoing, suggesting that some of the flagged contributions may have come from Americans living overseas.

“All US citizens and permanent residents, including those who live outside the US, are legally permitted to donate to New York City mayoral campaigns under federal campaign finance law and New York State and City law,” Dora Pekec, a spokesperson for the Mamdani campaign, told Fox News Digital.

“The Campaign has a rigorous compliance process in place to ensure compliance with these laws, including a protocol to confirm whether donors with foreign addresses are US citizens or lawful permanent residents,” Pekec added.

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“The Campaign will promptly issue refunds for any donations that are found to be impermissible.”

While Mamdani's team has reportedly returned some donations, records indicate at least 88 contributions - totalling around $7,190 - remain unreturned.

What happens next?

The referrals urge both Manhattan District Attorney Alvin Bragg and the DOJ to launch investigations into the alleged illegal donations.

The controversy lands at a sensitive moment for Mamdani's campaign, which has raised roughly $4 million in private donations and received an additional $12.7 million in public matching funds through New York City's campaign finance programme.

With less than a month until election day, Mamdani's campaign reportedly has about $6.1 million in cash on hand.

Who is Zohran Mamdani?

Zohran Mamdani, 33, is an Indian-American politician and activist representing Astoria, Queens, in the New York State Assembly. Known for his socialist platform and progressive alliances, Mamdani has been one of the most visible faces of the Democratic Socialists of America (DSA) in New York politics.

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The son of acclaimed filmmaker Mira Nair (Monsoon Wedding, The Namesake) and academic Mahmood Mamdani, he is considered a rising star on the city's left - but this controversy could complicate his mayoral aspirations.

Could this derail Zohran Mamdani's NYC Mayoral campaign?

Legal experts say the fallout could depend on whether investigators find evidence of intent or negligence.

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If prosecutors deem the violations“knowing and wilful,” Zohran Mamdani could face serious sanctions - but if the campaign can prove it acted in good faith and refunded unlawful donations promptly, penalties may be limited.

The Justice Department and Manhattan DA's office have not yet commented on whether they will pursue the referrals.

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