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About 70 NYC public housing employees arrested in bribery probe, federal officials say
By
Michelle Bocanegra
and
David Brand
Published Feb 6, 2024
Modified Feb 6, 2024
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Photo by John Smith/VIEWpres
By
Michelle Bocanegra
and
David Brand
Published Feb 6, 2024
Modified Feb 6, 2024
Share
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At least 70 current and former New York City Housing Authority employees are being charged in a vast kickback scheme that federal prosecutors are calling “the largest single-day bribery takedown in the history of the justice department.”
U.S. Attorney Damian Williams said superintendents, assistant superintendents and other NYCHA officials accepted more than $2 million in kickbacks from contractors in exchange for over $13 million in NYCHA business across at least 100 developments.
Williams said at a press conference on Tuesday that the workers exploited a no-bid process for contracts worth less than $10,000 to complete minor construction projects, window repairs and other small-scale jobs. He called the scheme “classic pay-to-play.”
“Superintendents accepting and extorting bribes from contractors had become business as usual,” Williams said. “They used their jobs at NYCHA to line their own pockets.”
Williams said the “culture of corruption” permeated through scores of developments, where superintendents and associates allegedly skimmed relatively small amounts of $500 to $2,000 from the contracts.
A map of New York City showing where the defendants allegedly accepted bribes.
Image courtesy of the U.S Attorney for the Southern District and the city's Department of Investigation
While the work was completed, the systemic corruption “eroded public trust,” Williams added.
According to his office, the defendants "demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so the contractor could receive payment from NYCHA."
"As alleged, the defendants typically demanded approximately 10% to 20% of the contract value—between $500 and $2,000 depending on the size of the contract—but some defendants demanded even higher amounts," the office said in a release.
The New York Post first reported on the arrests on Tuesday morning.
NYCHA superintendents earned a minimum annual salary of around $60,000 last year, while assistant superintendents earned a minimum of about $50,000 a year, according to city records.
NYCHA CEO Lisa Bova-Hiatt said the agency has “zero tolerance for wrongful and illegal activity” in a statement.
“The individuals allegedly involved in these acts put their greed first and violated the trust of our residents, their fellow NYCHA colleagues and all New Yorkers,” she added.
NYCHA is the country’s largest public housing agency, with around 400,000 tenants in 335 developments citywide. It employs more than 12,000 staff and has a budget of more than $3.3 billion.
In a Tuesday morning email with the subject line “combatting malfeasance,” Bova-Hiatt and NYCHA Chief Operating Officer Eva Trimble told agency staff that federal agents arrested “numerous NYCHA employees and retirees on charges of bribery.”
“While it is a difficult day in NYCHA history, we will not allow bad actors to disrupt our progress or undermine our achievements,” read the internal email, which was obtained by Gothamist.
The federal raid took place while Mayor Eric Adams was in Albany asking state lawmakers to take up his policy goals.
Charles Lutvak, a spokesperson for City Hall, said the administration would work with federal authorities to root out corruption.
“Anyone who breaks the law in New York City will be held accountable — no matter where they work,” he said. “But misusing resources set aside for our public housing residents is particularly egregious.”
Bart Schwartz, a former federal prosecutor who is serving as a federal monitor for NYCHA under a 2019 agreement, said the arrests underscore the need for changing the authority's culture and improving oversight.
"The NYCHA Federal Monitor’s team has promptly referred all criminal activities we have uncovered during our field investigations to the U.S. Attorney’s Office and the NYC Department of Investigation with the confidence that they would move effectively, as they did," Schwartz said. "This is a step in the right direction reminding NYCHA’s employees and vendors that they cannot continue to take advantage of the residents."
Jumaane Williams, the city's public advocate who has previously named NYCHA one of the city's "worst landlords," called the charges "staggering."
"As the legal process moves forward, accountability for bad actors and implementation of reforms are essential for NYCHA to prove its commitment to repairing both its buildings and the trust of the tenants paying to live there," he said.
This story was updated to include additional information about the charges and remarks from the U.S. attorney and other officials.
Tagged
new york city
housing
nycha
jumaane williams
public safety
Politics
Michelle Bocanegra
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David Brand
David is a reporter covering housing for Gothamist and WNYC. Got a tip? Email [email protected] or Signal 908-310-3960.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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