New York, NY. — Federal prosecutors announced Tuesday that all 70 New York City Housing Authority (NYCHA) employees charged in a sweeping February 2024 bribery and extortion investigation have now been convicted, marking the completion of one of the largest single-day corruption actions in Department of Justice history.
U.S. Attorney Jay Clayton said the final guilty plea represents “an important milestone,” noting that every defendant has now admitted guilt or been found guilty at trial for accepting cash bribes in exchange for awarding repair and maintenance contracts at NYCHA developments. All told, three defendants were convicted at trial, 56 pled guilty to felony charges, and 11 pled guilty to misdemeanor offenses. Sentences imposed so far range up to 48 months in prison.
Prosecutors said the defendants collectively accepted more than $2.1 million in bribes in return for steering over $15 million in “micro-purchase” NYCHA contracts—no-bid jobs under $10,000 that could be awarded directly by on-site staff. In many cases, NYCHA employees demanded payments of 10% to 20% of a contract’s value, either to award the job or to approve the contractor’s completed work for payment.
“As a result of these convictions, the defendants will collectively pay over $2.1 million in restitution to NYCHA and will forfeit more than $2 million in criminal proceeds,” Clayton said. “NYCHA residents deserve better. New Yorkers deserve better.”
Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation, said the case exposed corruption in almost one-third of NYCHA’s 365 developments across all five boroughs. She noted that DOI’s 14 recommended contracting reforms—including several previously rejected by NYCHA in 2021—have now been implemented.
HUD-OIG Acting Inspector General Brian D. Harrison said the swift completion of all 70 cases “sends a clear signal to corrupt public officials that they will be held accountable,” adding that millions intended for HUD tenants had instead been diverted for personal gain.
HSI Special Agent in Charge Ricky J. Patel called the pay-to-play operation a “brazen corruption and extortion scheme” that exploited NYCHA’s operations and “shortchanged its communities.”
Leaders from the Department of Labor OIG and IRS-CI also highlighted the cooperative investigative effort and reaffirmed their agencies’ commitment to combating public corruption.
According to court filings and trial evidence, the scheme centered on NYCHA’s micro-purchase contracting system, which allows designated staff to award contracts below $10,000 without competitive bidding. Investigators found that defendants routinely demanded cash either before awarding contracts or after work was completed, when NYCHA employees had to sign off for a contractor to get paid.
Clayton praised the work of DOI, HUD-OIG, HSI, DOL-OIG, IRS-CI, and members of the HSI Document and Benefit Fraud Task Force, as well as the U.S. Attorney’s Office Public Corruption Unit. Multiple assistant U.S. attorneys handled the prosecutions across the 70 cases.
NYCHA leadership cooperated throughout the investigation and has adopted new oversight measures to prevent similar schemes.
The cases remain under the jurisdiction of the Southern District of New York. The U.S. Attorney’s Office said sentencings will continue into 2026.
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All these criminals should have to pay back DOUBLE what the stole AND serve a minimum of 5 years in prison !! Then others might think twice before stealing these monies !!
My grandmother always told me when I was a child living in Jamaica that “honesty is the best of policy.” She also told us that “thou shall not steal.”