Unbelievable: Justice Department Announces 70 Arrests of New York City Employees in Bribery Scandal

AP Photo/Yuki Iwamura

Earlier this month, the Justice Department announced a record-breaking series of arrests in connection with a bribery and extortion ring allegedly conducted by current and former employees of New York City Housing Authority (NYCHA). The arrests mark the largest number of bribery charges imposed on a single day and affected 70 individuals accused of illicit activity.

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The defendants are accused of lining their pockets with cash payments from contractors eager to do business in New York City. The operation was the result of a collaboration between local and federal authorities to uncover the scheme.

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 Garland echoed Williams’ sentiments, asserting that the alleged crimes “are serious violations of the public trust.”

The scandal centers on allegations that NYCHA employees abused their positions to secure no-bid contracts for specific contractors in exchange for millions of dollars in bribes. The kickbacks ranged between 10 percent and 20 percent of each contract’s value. The alleged pay-to-play scheme defrauded the government and taxpayers. It also had a negative impact on the quality of living of more than 200,000 residents, according to HUD Inspector General Rae Oliver Davis.

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The bribes -- more than $2 million in total -- allegedly took place at nearly one-third of all NYCHA buildings across all five boroughs of New York City.

Sixty-six of those facing charges were arrested Tuesday morning in several locations, including New York City, New Jersey, Connecticut and North Carolina. They were arraigned in federal court, and all were released on $50,000 bond, with travel restrictions.

NYCHA -- the largest public housing authority in the nation -- receives more than $1.5 billion a year from the federal government. One in 17 New Yorkers lives in a NYCHA building. There are 335 developments.

The bribes -- more than $2 million in total -- allegedly took place at nearly one-third of all NYCHA buildings across all five boroughs of New York City.

Sixty-six of those facing charges were arrested Tuesday morning in several locations, including New York City, New Jersey, Connecticut and North Carolina. They were arraigned in federal court, and all were released on $50,000 bond, with travel restrictions.

Prosecutors say superintendents or assistant superintendents demanded bribes from contractors for repairs or construction work on NYCHA properties, and if they didn't pay up, they'd award the work to someone else.

"As we allege, the 70 defendants charged today allegedly demanded over $2 million in bribe money from contractors in exchange for giving out over $13 million of work on NYCHA buildings. And if the contractors didn't pay up, the defendants wouldn't give them the work. That's classic pay-to-play, and this culture of corruption at NYCHA ends today," said U.S. Attorney Damian Williams. "The corruption we've alleged infected every corner of the city. As the charges show, superintendents accepting and extorting bribes from contractors had become business as usual, occurring at almost 100 NYCHA buildings across all five boroughs. That's nearly a third of all NYCHA buildings."

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Ivan J. Arvelo, the Homeland Security Investigations Special Agent in Charge, cited the effect of the criminal activity on residents “who may have been cheated out of better services and programs.”

The charges against the NYCHA workers provide a serious reminder about corruption in government. The indictments could prompt calls for transparency in how public contracts are awarded and a reimagining of the measures employed to prevent such an abuse of power.

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