Federal prosecutors in New York on Tuesday unsealed bribery and extortion charges against 70 current and former employees of the New York City Housing Authority (NYCHA) for allegedly pocketing over $2 million in cash payments for no-bid repair contracts.
In a statement posted on X, US Attorney for the Southern District of New York Damian Williams said the scheme involved nearly a third of the city's 335 public housing developments and called it "the largest single-day bribery takedown" in the Justice Department's history.
"Instead of acting in the interests of NYCHA residents, the City of New York, or taxpayers, the 70 defendants charged today allegedly used their jobs at NYCHA to line their own pockets. This action is the largest single-day bribery takedown in the history of the Justice Department. NYCHA residents deserve better," Williams wrote in the post.
"My Office is firmly committed to cleaning up the corruption that has plagued NYCHA for far too long so that its residents can be served with integrity and have the high-quality affordable homes that they deserve. The culture of corruption at NYCHA ends today," he added.
My Office is firmly committed to cleaning up the corruption that has plagued NYCHA for far too long so that its residents can be served with integrity and have the high-quality affordable homes that they deserve. The culture of corruption at NYCHA ends today." (3/3)
— US Attorney SDNY (@SDNYnews) February 6, 2024
Behind the Scheme
In describing the scheme, Williams said 70 public housing authorities, including superintendents and assistant superintendents, pocketed over $2 million in bribes from contractors who wanted to do repair works in apartment buildings throughout New York City's five boroughs.
The employees would allegedly demand between 10% and 20% of the contract value or between $500 and $2,000 depending on the size of the contract, but some employees demanded higher payments.
In total, more than $13 million in contracts were wrongfully handed out. The scheme involves nearly 100 buildings in New York City or almost a third of the authority's properties.
As of Tuesday, 66 of the 70 employees involved in the scheme were arrested, per a press release from the office of the U.S. Attorney for the Southern District of New York. Their charges include solicitation and receipt of a bribe, extortion, destruction of evidence, false statements, and conspiracy offenses.
Prosecutors noted that at least five of the 70 employees charged Tuesday were previously involved in bribery and extortion schemes that date back to 2013.
