Federal prosecutors have brought charges against 70 current and former employees of the New York City Housing Authority (NYCHA), the largest public housing agency in North America. The charges stem from allegations of accepting bribes in exchange for awarding no-bid contracts. Damian Williams, the U.S. attorney in Manhattan, described it as “the largest single-day bribery takedown” in the history of the U.S. Department of Justice.
Allegations and Charges
According to Williams’ office, 66 individuals were arrested on Tuesday morning. Each defendant is facing charges of extortion as a government workers, with a maximum sentence of 20 years in prison, along with charges of soliciting and receiving bribes. Some also face additional conspiracy charges.
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NYCHA Response
In response to the allegations, NYCHA Chief Executive Officer Lisa Bova-Hiatt emphasized the agency’s “ZERO tolerance for wrongful and illegal activity.” She condemned the actions of those involved, stating that they “violated the trust of our residents, their fellow NYCHA colleagues, and all New Yorkers.”
Details of the Scheme
The criminal complaint outlines how defendants, including supervisors, allegedly demanded cash from contractors before authorizing contracts or approving completed work. Typically, these demands amounted to between 10% and 20% of the contract value, resulting in payments ranging from $500 to $2,000 per deal. Over $2 million in bribes were allegedly accepted in exchange for awarding no-bid contracts worth $13 million across approximately 100 NYCHA buildings.
Legal Proceedings
The arrested defendants were scheduled to appear in the U.S. District Court in Manhattan for their hearings on Tuesday.
NYCHA and its Residents
NYCHA serves over half a million New York City residents, providing housing or rental subsidies to those in need. The authority receives significant annual funding, approximately $1.5 billion, from the U.S. Department of Housing and Urban Development.
Response from Authorities
U.S. Attorney Damian Williams reiterated the importance of accountability, stating that “NYCHA residents deserve better.” The charges and subsequent legal proceedings underscore the severity of the allegations and the commitment to upholding integrity within public institutions.
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