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All 70 NYCHA Workers Convicted in Pay-to-Play Contract Scheme

Sentencing now follows a probe prompting new NYCHA procurement controls.

FILE - The New York City Housing Authority's John Haynes Holmes Towers are seen on April 4, 2019, in New York. (AP Photo/Mark Lennihan, File)
The Queensbridge North Houses in Queens, one of the city’s largest public housing developments.
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Overview

  • Prosecutors secured the final conviction this week from a February 2024 sweep that they described as the largest single-day bribery takedown in Justice Department history.
  • Outcomes include 56 felony guilty pleas, 11 misdemeanor pleas, and three jury trial convictions on bribery, fraud, or extortion charges.
  • Officials say workers took over $2.1 million in bribes tied to roughly $15 million in no-bid repair contracts, with courts ordering more than $2.1 million in restitution and about $2 million in forfeitures.
  • The scheme relied on cash kickbacks typically equal to 10%–20% of a contract, often $500 to $2,000, exploiting microcontracts below the $10,000 bidding threshold.
  • Authorities report the conduct touched nearly a third of NYCHA developments across the five boroughs, and sentencing is underway with potential prison terms as the agency implements new procurement safeguards.