Corrupt NYCHA Workers Extort $2M In Bribes, Feds Say
Corrupt NYCHA Workers Extort $2M In Bribes, Feds Say

Corrupt NYCHA Workers Extort $2M In Bribes, Feds Say

NEW YORK CITY — Corrupt NYCHA employees extorted more than $2 million in bribes from contractors in public housing projects across the five boroughs, federal prosecutors said.

The sprawling corruption case unveiled Tuesday in Manhattan federal court set a single-day record for the largest bribery takedown in Department of Justice history: 70 current and former NYCHA employees, said U.S. Attorney Damian Williams Tuesday, in a statement.

“The culture of corruption at NYCHA ends today,” he said.

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Authorities on Tuesday arrested 66 of those 70 NYCHA workers charged with bribery and extortion, among other offenses, in the case.

The workers all face accusations they abused their authority to hire contractors without soliciting bids, so long as the project’s cost fell below a certain threshold, now set at $10,000.

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They’d demand a fractional cut from the contract’s value as a bribe, typically about $500 to $2,000, authorities said.

But some workers are accused of demanding much larger amounts — one employee, Juan Mercado, who worked as a superintendent in Queens public housing developments solicited at least $314,000 to give out $1.76 million in no-bid contracts, according to court documents.

More than $13 million in no-bid contracts were corruptly awarded by the accused NYCHA employees, prosecutors said.

Public Advocate Jumaane Williams, who named NYCHA as the city’s worst landlord in 2022, deemed the charges a “staggering statement” on widespread abuses of power and tenant trust.

“The shameful conduct alleged ultimately harms not only tenant trust but tenant safety, as it corrupts the repair process and contributes to dangerous conditions at complexes across the city – which can prove deadly, as with the recent death from Legionnaires disease,” he said in a statement.

Nycha Complaints by Matt Troutman on Scribd


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