- 70 current and former NYCHA employees charged with accepting kickbacks from contractors for city contracts in a widespread corruption case affecting all five boroughs and six states.
- Charges involve $2 million in kickbacks for awarding small jobs without a bidding process, with contractors who refused to pay being excluded from work.
- Investigation reveals increased costs, diverted funds, and undermined trust in public housing; largest number of federal bribery charges on record.
Additional Coverage:
Seventy current and former employees of the New York City public housing system have been charged with accepting kickbacks from contractors in exchange for city contracts, according to federal prosecutors in New York. The arrests took place in six different states and all five boroughs as authorities aimed to send a strong message about corruption. Superintendents and assistant superintendents at roughly 100 public housing buildings collectively received $2 million in kickbacks for awarding small jobs under $10,000 without a bidding process. U.S. Attorney Damian Williams described the behavior as “classic pay to play” and noted that it had become a regular practice. This case marks the largest number of federal bribery charges on a single day in the history of the Department of Justice.
The alleged wrongdoing began in 2013 and continued until 2023, with contractors who refused to pay kickbacks being excluded from work. As of Tuesday, all 70 NYCHA employees facing charges have been suspended. Sixty-five of the defendants were arrested in six different states and all five boroughs by federal agents from Homeland Security Investigations.
The city’s Department of Investigation stated that the fraud led to increased costs for small repairs, diverted funds, and undermined the trust of public housing residents. Commissioner Jocelyn Strauber from the Department of Investigation described the bribery and extortion as exploiting the no-bid process for goods and services under $10,000. The investigation involves multiple agencies, including the Department of Investigation, Homeland Security Investigations, and the U.S. Attorney’s office in Manhattan.