70 NYCHA employees charged with accepting bribes for contracts

Largest 1-day bribery arrest in Justice Department history; 9 defendants from Brooklyn

February 6, 2024 Brooklyn Eagle Staff

The Red Hook Houses. Eagle file photo by Paul Frangipane

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The U.S. Justice Department, the NYC Department of Investigation, the Department of Homeland Security and other government agencies on Tuesday announced bribery and extortion charges against 70 current and former employees of the New York City Housing Authority.

The defendants, who were arrested in New York and several other states, were slated to appear before several U.S. magistrate judges in the Southern District of New York.

Defendants from Brooklyn included Serwyn Barley, Patrick Butler, Vernon Chambers, Joseph Fuller, Veronica Hoffman, Nakia McCoy, Chrisie Salter, Tanisha Sands, Lindsay Wade and Calvin Wright. All were charged with Solicitation and Receipt of a Bribe as well as Extortion Under Color of Official Right; some face additional charges.

A map of NYCHA developments where the alleged incidents took place shows a concentration in North, Central and Northeast Brooklyn as well as in Red Hook and at a handful of developments in or near Coney Island.

U.S. Attorney for the Southern District Damian Williams said: “Instead of acting in the interests of NYCHA residents, the City of New York or taxpayers, the 70 defendants charged today allegedly used their jobs at NYCHA to line their own pockets. This action is the largest single-day bribery takedown in the history of the Justice Department.”

New York City Department of Investigation Commissioner Jocelyn E. Strauber said: “As charged, these 70 current and former NYCHA supervisors and other staff used their positions of public trust and responsibility to pocket bribes in exchange for doling out no-bid contracts. The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process, which DOI has recommended and NYCHA has accepted.”

Homeland Security Investigations Special Agent-in-Charge Ivan J. Arvelo said: “These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals. Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs.”

NYCHA is the largest public housing authority in the country, providing housing to one in 17 New Yorkers in 335 developments across the city. When repairs or construction work require the use of outside contractors, services must typically be purchased via a bidding process.

This map shows locations NYCHA developments where staffers took bribes from contractors, to the tune of $70 million nationwide. It shows a concentration in North and Central Brooklyn, with other locations in Red Hook, Coney Island and elsewhere. Map courtesy of U.S. Attorney’s Office

However, when the value of a contract was under a certain threshold (up to $10,000), designated staff at NYCHA developments could hire a contractor of their choosing without soliciting multiple bids, according to federal authorities.

This “no-bid” process was faster than the general NYCHA procurement process, and selection of the contractor required approval of only the designated staff at the development where the work was to be performed.

The defendants, all of whom were NYCHA employees during the time of the relevant conduct, allegedly demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so the contractor could receive payment from NYCHA.

According to the complaint, the defendants typically demanded approximately 10% to 20% of the contract value — between $500 and $2,000 depending on the size of the contract — although some defendants demanded higher amounts.

In a separate statement, New York City Public Advocate Jumaane Williams, said, “Our office has consistently raised the failures of management at NYCHA as the worst landlord in the city, but the charges today are nonetheless a staggering statement on the widespread abuses of power and tenant trust at the core of the agency’s deficiencies. 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.

These prosecutions are part of an Organized Crime Drug Enforcement Task Forces operation. They are being handled by the Southern District’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Meredith Foster, Catherine Ghosh and Sheb Swett are in charge of the prosecutions.

The charges contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.