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Some New York City Housing Authority employees are suspected of creating an extensive kickback scheme. They can demand anywhere from $500 to more than $2,000 in cash for a no-bid contract award.
The US judicial system announced an anti-corruption campaign on Tuesday “Historical” In the social and public housing sector in New York with about 70 arrests and charges of bribery and extortion. Manhattan Federal District Attorney Damian Williams made the announcement in a press release “The largest number of federal corruption prosecutions in a single day in the history of the Department of Justice.”.
they “70 former and current New York City Housing Authority (NYCHA) employees have been indicted on suspicion of accepting cash payments in exchange for awarding NYCHA contracts.”He accuses American justice.
Sixty-six of the 70 people whose names, ages and residences were released were arrested Tuesday morning in New York and in neighboring New Jersey and Connecticut and further south in North Carolina. The defendants in New York are expected to appear before the federal court in the city today to be formally charged.
The total bribes exceed two million dollars
“Instead of acting in the best interests of NYCHA residents, the City of New York, or taxpayers, the 70 defendants are suspected of using their positions to line their own pockets.”Raad Prosecutor Williams.
With the support of New York's municipal authorities and the US Departments of Labor and Housing, the judge ensured that “The prosecution was deeply committed to cleansing up (…) and ending the culture of corruption that has plagued NYCHA for far too long today.”.
In detail, Justice uncovered an extensive kickback system, whereby a NYCHA employee could demand anywhere from $500 to more than $2,000 in cash to award a no-bid contract worth less than $10,000, for the repair and maintenance of social housing. “In total, the defendants demanded more than $2 million in bribes from construction companies in exchange for awarding contracts without bids worth $13 million.”.
According to the courts, NYCHA is the largest public housing and social housing office in the United States, with one in every 17 New Yorkers living in 335 complexes in the megacity of 8.5 million. Founded in 1934, NYCHA receives $1.5 billion in federal funds each year.
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