70 New York Public Housing Employees Accused of Accepting Bribes from Contractors, US Claims – By Reuters

By Jonathan Allen

NEW YORK – Federal prosecutors have charged 70 current and former employees of the New York City Housing Authority (NYCHA) with accepting bribes in return for awarding no-bid contracts. This action marks the largest single-day bribery operation in the history of the U.S. Department of Justice, according to U.S. Attorney Damian Williams in Manhattan.

Among those charged, 66 individuals were arrested on Tuesday morning. They face extortion charges as government officials, which could lead to a maximum of 20 years in prison, along with charges of soliciting and receiving bribes. Some of the accused face additional conspiracy charges as well.

NYCHA Chief Executive Officer Lisa Bova-Hiatt emphasized her agency’s commitment to integrity, stating that they maintain a "ZERO tolerance for wrongful and illegal activity." In her statement, she expressed disappointment in the alleged actions of the individuals involved, highlighting how they violated the trust placed in them by residents and their colleagues. She assured that the agency would not allow these wrongdoings to overshadow its achievements.

The criminal complaint details that the defendants, including supervisors, demanded cash from contractors for small repair jobs. They typically requested between 10% and 20% of the contract value, which translated to illicit gains of $500 to $2,000 per deal. Collectively, they are accused of accepting over $2 million in bribes in exchange for awarding no-bid contracts totaling approximately $13 million across around 100 different NYCHA buildings.

The arrested defendants were scheduled for an initial appearance in U.S. District Court in Manhattan on the same day.

Currently, more than half a million of New York City’s 8.8 million residents live in NYCHA housing or receive rental subsidies for private market apartments. The authority receives $1.5 billion annually from the U.S. Department of Housing and Urban Development.

"NYCHA residents deserve better," said U.S. Attorney Williams in a statement.