The Department of Justice (DOJ) announced Tuesday that it has indicted 70 current and former New York City Housing Authority (NYCHA) employees on corruption-related charges.
The 70 federal bribery indictments are the most brought in a single day in Justice Department history, and the department arrested 66 of the defendants in four states Tuesday morning. according to Go to press release. They are accused of accepting money from contractors in exchange for awarding favorable no-bid contracts. (Related article: 'Exposing corruption': Senate Republicans target Biden as DHS 'censor' agency)
According to the Department of Justice, NYCHA is the largest public housing authority in the United States, providing housing to 1 in 17 New York City residents through 335 developments. The U.S. Department of Housing and Urban Development provides more than $1.5 billion in federal funding annually to NYCHA.
Commenting on today's indictment of 70 current and former NYCHA employees, U.S. Attorney Williams said: “The 70 defendants indicted today are acting in the best interests of NYCHA residents, the City of New York, and the taxpayers.'' “Rather than act with integrity, he allegedly used his job at NYCHA to line his own pockets.” (1/3)
— U.S. Attorney SDNY (@SDNYnews) February 6, 2024
“The 70 defendants indicted today allegedly used their jobs at NYCHA to line their own pockets, rather than act in the best interests of NYCHA residents, the City of New York, and taxpayers.” Damien Williams, U.S. Attorney for the Southern District of New York, said in a press release. “This action is the largest single-day bribery bust in Department of Justice history. NYCHA residents deserve better. My office is committed to rooting out the corruption that has plagued NYCHA for far too long. We are steadfastly committed to ensuring our residents receive the services they deserve with integrity and the high-quality, affordable housing they deserve. The culture of corruption at NYCHA ends today.”
All of the defendants were NYCHA employees at the time they allegedly sought and secured cash for the contract, according to a press release.
Their alleged methods include requesting advance payments from contractors to receive contracts and having contractors complete work and receive payment from NYCHA, typically 10 to 20 percent of the contract amount. % (in amounts ranging from $500 to $2,000).
Some defendants asked for even higher percentages, the Justice Department alleges.
“In total, these defendants solicited more than $2 million in fraudulent payments from contractors in exchange for awarding no-bid contracts worth $13 million,” according to the Department of Justice. Many of the defendants could be sentenced to more than 10 years in prison.
“NYCHA has zero tolerance for fraud or illegal activity,” NYCHA CEO Lisa Bova Hiatt told the Daily Caller News Foundation. “The individuals who allegedly engaged in these acts put their own desires first and violated the trust of our residents, our NYCHA colleagues, and all New Yorkers. It goes against everything we stand for as public servants and will not be tolerated in any way.”
The Department of Justice did not immediately respond to DCNF's request for comment.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
