Why were 70 NYCHA employees arrested? Full form and charges explained amid bribery scandal

NYCHA, also known as the New York City Housing Authority, has been trending in the headlines after multiple employees were arrested on charges of being involved in corruption practices. According to the Gothamist, around 70 employees have been charged so far, including current and former workers.

The accused were reportedly offered around $2 million by contractors in exchange for getting company contracts worth $13 million, as per USA Today. Lisa Bova Hiatt, who serves as the company CEO, responded to the arrests by saying that they are completely against any kind of illegal activity.

U.S. Attorney Damian Williams also shared a statement, saying that the accused "used their jobs" to earn benefits for themselves instead of serving the people of New York. Williams also claimed:

"This action is the largest single-day bribery takedown in the history of the Justice Department."

Williams also revealed that the contracts included plumbing work and repairs, and the entire scandal left some kind of impact on all sides of the city. He continued:

"As the charges show, superintendents accepting and extorting bribes from contractors had become business as usual, occurring at almost 100 NYCHA buildings across all five boroughs. That's nearly a third of all NYCHA buildings."

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NYCHA scandal and the charges against the arrested employees explained

The arrests of the NYCHA employees were the result of an investigation that began in 2013. The authority offers housing facilities to New York residents in around 335 developments throughout the city with assistance from the U.S. Department of Housing and Urban Development.

The United States Attorney's Office states that services must go through a bidding process for any repairs involving outside contractors. However, in case the price of the contract went up to around $10,000, the housing authority's staff members can bring in a contractor without the bidding process.

The process for the latter was quicker compared to the bidding process, where the staff members had to approve everything. However, the arrested employees of the housing authority began accepting bribes and told contractors to pay on the spot or when the work was completed.

The employees were reportedly paid between 10% and 20% of the overall contract value, sometimes even more than that. The list includes names such as James Baez, Nymiah Branch, Vernon Chambers, and many others.

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What could happen after the scandal?

Rae Oliver Davis, who serves as the Inspector General for HUD OIG, said that the scandal could have a negative impact on the rest of the housing programs that have offered help to thousands of people. He further stated:

"It also poses a significant risk to the integrity of the HUD rental assistance programs that support housing assistance in New York City and erodes the trust of NYCHA residents in HUD's programs. We will continue our work with the U.S. Attorney's Office and our law enforcement partners to prevent and detect these and other schemes."

U.S. Attorney Damian Williams mentioned in a statement that his office believes in putting an end to corruption that has been active at the Housing Authority for many years.

Williams also expressed gratitude towards the New York City Police Department and U.S. Marshals Service, along with DOI, OIG, the Benefit Fraud Task Force, and many others, for their flawless work while conducting the investigation and arresting the accused.