70 arrests highlight corruption in nation's largest public housing authority, US attorney says

Also: 70 Current And Former NYCHA Employees Charged With Bribery And Extortion Offenses (U.S. Attorney's Office, Southern District of New York)

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Source: Associated Press

70 arrests highlight corruption in nation’s largest public housing authority, US attorney says

BY LARRY NEUMEISTER
Updated 3:47 PM EST, February 6, 2024

NEW YORK (AP) — The largest public housing authority in the nation was infested by a “classic pay-to-play” culture of corruption where workers dispensed repair jobs to contractors willing to pay bribes, a prosecutor said Tuesday as authorities revealed they had arrested 70 current and former employees for illegally pocketing over $2 million.

U.S. Attorney Damian Williams told a news conference that the corruption was so widespread over at least the last decade that it affected nearly a third of the 335 housing developments citywide where 1 in 17 New Yorkers lived.

Bribery and extortion charges led to a roundup of current and former employees of the New York City Housing Authority that represented the largest single-day bribery takedown in the history of the U.S. Justice Department, Williams said.

“The corruption we’ve alleged infected every corner of the city,” he said. The defendants were arrested in New York, New Jersey, Connecticut and North Carolina.

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Read more: https://apnews.com/article/public-housing-corruption-arrests-c223c2bdc0d5e52b1f8b064fceb7bc75

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Source: U.S. Attorney's Office, Southern District of New York

70 Current And Former NYCHA Employees Charged With Bribery And Extortion Offenses

Tuesday, February 6, 2024
For Immediate Release
U.S. Attorney's Office, Southern District of New York

In the Largest Number of Federal Bribery Charges on a Single Day in DOJ History, 70 Current and Former Employees of the NYCHA Have Been Charged with Allegedly Accepting Cash Payments from Contractors in Exchange for Awarding NYCHA Contracts

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Rae Oliver Davis, the Inspector General of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced the unsealing of bribery and extortion charges against 70 current and former employees of the New York City Housing Authority (“NYCHA”). 66 of the 70 defendants were arrested this morning in New York, New Jersey, Connecticut, and North Carolina. Defendants who were arrested in the New York area are scheduled to appear before U.S. Magistrate Judges Stewart D. Aaron, Sarah L. Cave, Valerie Figueredo, Sarah Netburn, Katharine H. Parker, Gary Stein, and Ona T. Wang in Manhattan federal court later today.

U.S. Attorney Damian Williams said: “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. 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."

Attorney General Merrick B. Garland said: “The Justice Department will prosecute to the fullest extent of the law those who abuse their positions in public service in order to enrich themselves. The crimes alleged in this case are serious violations of the public trust, and I am grateful to the agents and our partners across government who worked on this case, and to the prosecutors in the Southern District of New York for their tireless efforts to root out corruption.”

DOI Commissioner Jocelyn E. Strauber said: “As charged, these 70 current and former NYCHA supervisors and other staff used their positions of public trust and responsibility to pocket bribes in exchange for doling out no-bid contracts. The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process, which DOI has recommended and NYCHA has accepted. I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to protect scarce public resources intended to maintain public housing, and to hold accountable public servants who abuse their authority, and NYCHA’s senior leadership for its cooperation in this important investigation.”

HSI Special Agent in Charge Ivan J. Arvelo said: “These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals. Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs. I commend the outstanding work of HSI New York’s Document and Benefit Fraud Task Force for today’s historic operation. As one of the largest investigative agencies, the public can rest assured: Homeland Security Investigations will pursue all avenues of justice for the people of this great city.”

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Read more: https://www.justice.gov/usao-sdny/pr/70-current-and-former-nycha-employees-charged-bribery-and-extortion-offenses