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In a significant corruption crackdown, all 70 employees of the New York City Housing Authority have been convicted on charges of bribery, fraud, and extortion. Federal prosecutors revealed that the workers collectively accepted over $2 million in bribes to manipulate repair contracts, bypassing NYCHA's competitive bidding process. The scheme, which affected nearly a third of NYCHA's 335 housing developments, involved kickbacks ranging from $500 to $2,000 per contract, typically amounting to 10% to 20% of each contract's value.
The arrests, which took place in February 2024, marked the largest single-day bribery takedown in the history of the U.S. Justice Department. According to Gothamist, 56 defendants pleaded guilty to felony charges, 11 to misdemeanors, and three were convicted at trial. The convicted workers have been ordered to repay over $2.1 million to NYCHA and forfeit an additional $2 million in criminal proceeds.
The Telegraph reports that the NYCHA, the largest public housing system in the nation, receives over $1.5 billion in federal funding annually. Despite this, tenants have long complained about poor living conditions, including issues with rodents, mold, and heating. The corruption scheme further exacerbated these problems by diverting resources meant for essential repairs.
U.S. Attorney Jay Clayton stated, "All 70 charged defendants have now been convicted for attempting to criminally leverage the contracting process of work for affordable housing for New Yorkers to line their own pockets." The case highlights ongoing challenges in maintaining transparency and accountability within public housing systems.
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