Why were NYCHA employees arrested? NYC Housing Authority bribery scandal explained as 70 people charged

About 70 New York City Housing Authority (NYCHA) employees were taken into custody on Tuesday, February 6, 2024, as part of a federal corruption investigation. US Attorney Damian Williams has described it as the largest single-day bribery takedown involving the Justice Department. The 70 arrested employees have been accused of bribery by taking advantage of their position.

According to law enforcement officials, misusing power to fill one's own pockets had become a regular thing among employees. The arrestees involve the association's current and former employees, as reported by The New York Post. In certain cases, as much as $300,000 have allegedly been taken as bribes.

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Several former and current NYCHA employees were arrested for allegedly taking bribes by misusing their positions

A federal corruption investigation led to the arrest of about 70 New York City Housing Authority employees on Tuesday. The employees allegedly took bribes from contractors to decide what kind of contract they would get. Since the contractors are not bid contracts, the superintendent or assistant superintendent had the power to choose which contractor would be assigned which job.

After the job was done, the superintendent or the assistant superintendent had to sign off on the task so that the contractors could get paid. Instead, they allegedly asked for a share of the money to fill their pockets. The US Attorney's Office for the Southern District of New York issued a press release on Tuesday regarding the recent arrest. In the press release, DOI 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."

Strauber added:

"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."

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The employees have been arrested from several states

NBC New York reported that the investigation continued for a year, and the 70 arrests reportedly took place in six states. The New York Post has revealed the names of a few employees who have been arrested and the amount of bribes they have allegedly taken.

49-year-old Juan Mercado has been accused of taking $314,300 from at least $1,761,000 worth of contracts between 2014 and 2023.

Another employee, Alex Tolozano, allegedly made a minimum of $41,000 from contracts worth $205,000. Rigoberto Charriez has been accused of taking at least $70,000 from contracts worth $377,000.

US Attorney Damien Williams spoke about the allegations and 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."

The employees face several charges, including solicitation and receipt of a bribe, extortion under the color of official right, conspiracy to solicit and receive a bribe, and conspiracy to commit extortion under the color of official right. The potential maximum jail term, if found guilty, ranges from 5 years to 20 years for different charges.