On April 2, 2013, Smith was arrested by the FBI on federal corruption charges. The United States Attorney for the Southern District of New York and the Federal Bureau of Investigation alleged that Smith attempted to secure a spot on the Republican ballot in the 2013 New York City mayoral election through bribery of New York City Councilman Dan Halloran and two other Republican officials. In September 2014, Smith's Democratic primary challenger, former New York City Councilman Leroy Comrie, defeated Smith in a landslide. The following year, Smith was convicted of all charges against him and sentenced to seven years in federal prison.