In a sweeping federal corruption investigation, a total of 70 New York City Housing Authority (NYCHA) employees were arrested on Tuesday, marking the largest single-day bribery takedown in the history of the Department of Justice, according to U.S. Attorney Damian Williams.
The alleged corrupt practices date back to 2013 and persisted until 2023, with the defendants facing charges related to accepting cash payments from contractors in exchange for awarding NYCHA contracts.
Officials revealed that the accused employees, both current and former, were implicated in demanding a staggering $2 million in bribes from contractors. In return, these employees allegedly granted more than $13 million worth of work on NYCHA buildings. Contractors who refused to pay the kickbacks were reportedly excluded from potential work opportunities.
The corrupt activities were not isolated incidents but had become commonplace, according to authorities. Superintendents, in particular, were identified as playing a pivotal role in the bribery scheme. This illicit conduct was reported to be widespread, occurring in nearly 100 NYCHA buildings across all five boroughs, constituting almost one-third of all NYCHA buildings.
NYCHA, the largest public housing authority in the United States, receives over $1.5 billion in federal funding annually and provides homes for 1 in 17 New Yorkers.
The accused individuals, including superintendents and assistant superintendents, are alleged to have exploited their positions of influence to favor contractors who paid bribes for smaller contracts, typically valued at less than $10,000. These contracts involved crucial maintenance and construction work in NYCHA buildings, such as plumbing or repairs.
The contracting process was non-competitive, bypassing traditional bidding procedures. Instead, superintendents or assistant superintendents had discretion in selecting contractors. Following the completion of the work, the employees allegedly demanded cash bribes to approve or sign off on the repairs, enabling the contractors to receive payment from NYCHA.
Authorities emphasized that this corrupt practice was not an isolated incident but had become entrenched, involving numerous NYCHA employees.
U.S. Attorney Damian Williams urged contractors who may have paid bribes to come forward and speak out, assuring them that such conduct by NYCHA employees would not be tolerated.
“As the complaint today makes clear, many contractors have been brave enough to tell law enforcement about bribes NYCHA employees demanded of them. Going forward contractors should understand that NYCHA employees should not be asking for a single penny,” Williams stated.