New York Mayor Eric Adams funneled foreign campaign donations through straw donors in the U.S. to circumvent federal election laws, federal prosecutors alleged in an indictment unsealed Thursday, a historic development in America’s largest city.

Mr. Adams, who denies wrongdoing, then used his power to provide favorable treatment for the “illicit benefits he received,” according to the 57-page bill secured by Damian Williams, the U.S. attorney for the Southern District of New York who’s also prosecuting rapper Sean “Diddy” Combs.

“After his inauguration as Mayor of New York City, Adams soon began preparing for his next election, including by planning to solicit more illegal contributions and granting requests from those who supported his 2021 mayoral campaign with such donations,” court papers say.

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Mr. Adams is charged with bribery and conspiracy to commit wire fraud and receive campaign contributions from foreign nationals.

Mr. Adams’ alleged ties to foreign figures date to 2014, when he became Brooklyn borough president, the indictment says.

The indictment alleges that in 2021 he then intervened with the city fire department to permit the Turkish Consulate to occupy a skyscraper that hadn’t passed a fire safety inspection “in exchange for, among other things, luxury travel benefits provided by the Turkish official and the airline manager.”

Prosecutors said the alleged criminality was compounded by Mr. Adams using illicit donations to leverage public matching funds under New York’s campaign system.

“Adams’ campaigns applied for matching funds based on known straw donations, fraudulently obtaining as much as $2,000 in public funds for each illegal contribution,” the indictment says.

The indictment is a damaging development for the mayor once hailed as a national model for Democrats. Still, the charges weren’t unexpected, given the swirl of investigations and resignations that dogged the administration in recent weeks.

Federal agents searched Mr. Adams’ official residence, Gracie Mansion, Thursday before authorities detailed the charges.

“We are not surprised. We expected this,” Mr. Adams said at a press conference Thursday. “I ask New Yorkers to wait to hear our defense before making any judgments.”

The mayor said he knew the rules and didn’t take foreign donations.

“I look forward to defending myself and the people of this city as I’ve done through my entire professional career,” he said.

Mr. Adams surrounded himself with supporters at the rain-soaked media event. They spoke one by one from the lectern while hecklers shouted at the mayor and his friends, creating a raucous and awkward scene.

“You are a disgrace to all Black people in this state. This is ridiculous. You can shush me all you want, but the people are with us,” a man with a megaphone shouted.

At a press conference, Mr. Williams and federal agents rejected the idea that Mr. Adams was targeted or treated differently than any other defendant.

“Mayor Adams took these contributions even though he knew they were illegal,” Mr. Williams said. “Year after year after year, he kept the public in the dark.”

The prosecutor detailed years of flight upgrades and other perks that Mr. Adams allegedly enjoyed on overseas trips.

Mr. Williams pointed to a notable episode where a Turkish official told Mr. Adams that because the country supported him for mayor, it was “his turn” to support Turkey by muscling fire officials to approve the consulate, known as the Turkish House, despite safety concerns.

Mr. Adams faces increasing calls to resign, especially from political opponents in next year’s election and liberal lawmakers who want him to cede way to New York City Public Advocate Jumaane Williams, a liberal in line to be acting mayor.

“There is simply zero chance that the wheels of government will move forward from this full steam ahead,” said Scott Stringer, a former city comptroller running against Mr. Adams. “Instead, we are left with a broken-down train wreck of a municipal government.”

Other election opponents, including city Comptroller Brad Lander and state Sen. Zellnor Myrie, called for him to resign.

Rep. Alexandria Ocasio-Cortez, New York Democrat, urged Mr. Adams to resign shortly before news of the indictment broke.

New York Gov. Kathy Hochul, also a Democrat, has the power to remove Mr. Adams but hasn’t commented on her next steps.

Mr. Adams won a hard-fought Democratic primary three years ago by putting together a coalition by espousing centrist views on policing and public safety and attracting blue-collar workers in the outer boroughs. In the city’s first brush with ranked-choice voting, he edged out former city sanitation Commissioner Kathryn Garcia by less than 1 percentage point in the final round.

Mr. Adams took office in January 2022 on a pledge to restore public safety and revive New York’s energy. Now he’s the city’s first mayor to face a criminal indictment.

The timing is awkward. The indictment landed while foreign leaders, including Turkish President Recep Tayyip Erdogan, descended on the city for the U.N. General Assembly.

If Mr. Adams steps down, Mr. Williams would take over and schedule a nonpartisan special election for mayor. That vote would occur within 90 days.

Mr. Williams is considered more liberal than Mr. Adams, so his rise is appealing to groups on the political left.

“Mayor Eric Adams can no longer govern. He has lost the trust of the everyday New Yorkers he was elected to serve. Our city deserves a leader we can trust and who is not engulfed in endless scandals,” said Ana Maria Archila and Jasmine Gripper, co-directors of the New York Working Families Party. “Fortunately for the people of New York, we have a public advocate who is ready to step in and lend stability to the city in this difficult moment.”