(NationRise.com) – Several dozen employees who currently and previously worked for New York City are facing serious charges related to corruption after a crackdown by federal officials.
Around 70 workers who either work for the New York City Housing Authority or were previously employed are being accused of corruption. According to Ivan Arvelo, a Homeland Security Investigations Special Agent, the defendants allegedly worked on secret deals with local contractors, then demanded that those companies be used in city contracts that were never opened for bidding.
The case, filed on February 6th, sets a new record for the total number of bribery charges filed by federal officials in a single day. The lawsuits later included extortion charges as well after investigators discovered that employees allegedly used their influence to demand kickbacks from contracts.
Arvelo noted that the real victims are the citizens of New York seeking housing assistance as the city’s cost of living continues to soar. He also accused the defendants of wasting millions in taxpayer dollars while putting residents at risk.
Text messages revealed the former NYCHA superintendent of Douglas Houses giving tips to Angela Williams, who was managing Farragut Houses, about a $1000 kickback he had recently received. He later asked her for help in securing a contractor after he was transferred to a new development.
Overall, the scheme netted a total of about $2 million for those involved from $13 million in contracts. It allegedly spanned over ten years and covered nearly one-third of the agency’s developments. NYCHA said that it’s fully cooperating with authorities as the investigation continues.
New York City boasts the nation’s most extensive public housing authority, with just over 525,000 residents as of 2023. It houses 1 in 17 of the city’s residents in 177,569 apartments. It relies heavily on funds from the federal government and works closely with some privately owned properties. The program is larger than several major US cities, including Miami and Atlanta.
The investigation remains active.
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