NYC Housing Authority Scandal: 70 Employees Face Bribery & Extortion Charges

Apartment buildingPhoto byDaryan ShamkhalionUnsplash

Some 70 current and former employees of the NYC Housing Authority were charged by Federal prosecutors with pocketing over $2 Million dollars in cash payments for contract repairs without bids. The contracts were for under $10 thousand dollars, and defendants allegedly demanded 10 - 20% of the contract value for themselves, sometimes more.

The U.S. Attorney, Damian Williams, said that "the scheme involved nearly a third of New York City’s 335 public housing developments – home to one in 17 New Yorkers."

The U.S. Attorney Damian Williams, said tThe cThe housing authority receives about $1.5 Billion in Federal funding annually, but has been dealing for years with problems such as broken heating and elevators, rats, and lead paint in buildings.

Defendants iwere arrested in New York, New Jersey, Connecticut, and North Carolina. The housing authority, according to the NYC Dept. of Investigation, has argeed to make significant reforms in it's no-bid contracts.