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New York public housing bribery case ends with a milestone 70 convictions

Seventy NYCHA employees were convicted of bribery, fraud, and extortion, accepting over $2.1 million in kickbacks linked to $15 million in no-bid contracts, authorities said.

  • On Tuesday, Seventy New York City Housing Authority employees were convicted, capping a decade-long scheme where public housing staff steered work to contractors.
  • Staff extracted cash kickbacks, demanding $500 to $2,000, typically about 10% to 20% of contract value, sometimes before work was signed off, investigators found.
  • City records show workers pocketed over $2.1 million from bribes linked to $15 million in no-bid contracts, and authorities ordered more than $2.1 million restitution plus $2 million forfeiture.
  • Prosecutors said 56 felony pleas, 11 misdemeanor pleas and three trial convictions arose from charges including bribery, fraud and extortion, with U.S. Attorney Jay Clayton condemning defendants for `attempting to criminally leverage the contracting process.`
  • The scheme affected nearly a third of NYCHA's 335 developments across five boroughs, raising concerns as tenants report rodents, mold and outages while NYCHA receives over $1.5 billion in federal funding annually.
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U.S. News broke the news in New York, United States on Tuesday, November 25, 2025.
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