Today the NYPD and federal investigators have arrested 70 supervisors and over a dozen other office employees of the New York City Housing Authority. The arrests came after an investigation that was carried out by the Department of Justice. The arrests even involve former employees as well. The investigation started at some point last year according to the news, however the scandal has been found to be running over more than a decade. NYCHA is considered to be the United States largest public housing authority.
Authorities claim this is the largest corruption scandal in the history to be investigated by the Department Of Justice. This is also the largest number of federal bribery charges brought in just a single day. The charges range from corruption, use of kickbacks, and as well as extortion. The scheme is being reffered to as a "pay-to-play" scheme.
In terms of the corruption and kickback charges, NYCHA was found to ask for more than $2 million of bribe money for giving out contracts of $13 million worth of construction. NYCHA did no-bid contracts for large scale projects (maintainance, painting, construction, any thing else NYCHA deals with) and asked for bribes that were 10% to 20% worth of the total construction cost. Sometimes instead of bribes, kickbacks worth between $2,000 to $10,000 were asked for in return of getting a contract.
There were also extortion charges where NYCHA employee would work with a co-conspirator to extort a construction company over a contract, so that the NYCHA could work with that company or contractor.
Authorities also found out that all these monetary transactions were done via cash and not by any other forms of payment.
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Authorities claim this is the largest corruption scandal in the history to be investigated by the Department Of Justice. This is also the largest number of federal bribery charges brought in just a single day. The charges range from corruption, use of kickbacks, and as well as extortion. The scheme is being reffered to as a "pay-to-play" scheme.
In terms of the corruption and kickback charges, NYCHA was found to ask for more than $2 million of bribe money for giving out contracts of $13 million worth of construction. NYCHA did no-bid contracts for large scale projects (maintainance, painting, construction, any thing else NYCHA deals with) and asked for bribes that were 10% to 20% worth of the total construction cost. Sometimes instead of bribes, kickbacks worth between $2,000 to $10,000 were asked for in return of getting a contract.
There were also extortion charges where NYCHA employee would work with a co-conspirator to extort a construction company over a contract, so that the NYCHA could work with that company or contractor.
Authorities also found out that all these monetary transactions were done via cash and not by any other forms of payment.
70 NYC housing workers charged in largest bribery takedown in DOJ history
Superintendents and assistant superintendents at about 100 New York City public housing buildings took $2 million in kickbacks from contractors, prosecutors said.
70 current and ex-NYCHA workers cuffed in historic, decade-long $2M ‘classic pay-for-play’ bribery and extortion bust
Seventy current and former NYCHA workers were busted Tuesday in a 10-year, $2M pay-to-play corruption scheme involving the largest number of federal bribery charges brought in a single day in DOJ h…
nypost.com
70 New York City housing employees charged in largest single-day bribery bust in DOJ history
Seventy current and former employees are alleged to have received cash from contractors in exchange for Housing Authority “no-bid” contracts, federal officials said.
www.nbcnews.com
Dozens have been arrested on bribery charges involving NYC Housing Authority
The Justice Department has announced charges against 70 current and former employees of New York City's massive public housing authority — the most federal bribery charges ever brought in one day.
www.capeandislands.org
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