Nine New Jersey residents were among 70 current and former New York City Housing Authority employees who were arrested on bribery and extortion charges in “the largest single-day bribery takedown in the history of the Justice Department.”
The suspects allegedly demanded cash kickbacks in exchange for lucrative construction, maintenance, and no-bid contracts in the New York Housing Authority — the country’s biggest public housing agency.
“The Justice Department will prosecute to the fullest extent of the law those who abuse their positions in public service in order to enrich themselves,” said Attorney General Merrick B. Garland. “The crimes alleged in this case are serious violations of the public trust.”
U.S. Attorney Damian Williams said the corruption was so widespread that it affected nearly a third of the 335 housing developments citywide where 1 in 17 New Yorkers lived over the past decade.
“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,” Williams said. “NYCHA residents deserve better.”
the United States Department of Justice, 70 current and former employees of the New York City Housing Authority (NYCHA) were arrested on Tuesday, including nine residents from New Jersey, in what has been labeled as the largest single-day bribery takedown in the history of the Justice Department.
The arrests come after a lengthy investigation into widespread corruption within NYCHA, which has affected nearly a third of the 335 housing developments citywide, where approximately 1 in 17 New Yorkers reside.
According to U.S. Attorney Damian Williams, the accused individuals allegedly exploited their positions within NYCHA to solicit bribes and extort payments from contractors, rather than serving the interests of NYCHA residents or the city.
The defendants from New Jersey are Roberto Cartagena, 48, of Union City; Rigoberto Charriez, a/k/a “Ricky”, 34, of Toms River; George Kemp, 49, of Irvington; Jaime Lan, a/k/a “Jimmy”, 57, of Stewartsville; Tara Lucas, 50, of Linden; Orlando Pardo, 56, of Maywood; Dwarka Rupnarain, 63, of Middletown; Clarence Samuel, 53, of Irvington; and Alex Tolozano, 57, of Maywood.
“These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals,” said Homeland Security Investigations (HSI) Special Agent in Charge Ivan J. Arvelo. “Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs. I commend the outstanding work of HSI New York’s Document and Benefit Fraud Task Force for today’s historic operation.”
Williams emphasized the significance of the charges, stating, “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 investigation revealed a pattern where NYCHA employees demanded cash payments from contractors in exchange for awarding contracts or signing off on completed work. These illicit transactions, often ranging from 10% to 20% of the contract value, amounted to over $2 million in corrupt payments for contracts worth more than $13 million.
The scope of the corruption has prompted calls for significant reforms within NYCHA’s procurement processes. Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation, stressed the need for reform, stating, “The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process.”
The charges brought against the defendants include bribery and extortion offenses. The defendants, all NYCHA employees at the time of the alleged conduct, face potential legal consequences as the cases move forward. However, they are presumed innocent until proven guilty in a court of law.
Attorney General Merrick B. Garland reiterated the Justice Department’s commitment to prosecuting public servants who abuse their positions for personal gain, emphasizing the serious violations of public trust alleged in this case.
The arrests were part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation, demonstrating a coordinated effort by multiple agencies to address corruption and dismantle criminal organizations.
The success of the operation was credited to the collaborative efforts of the U.S. Attorney’s Office for the Southern District of New York, the New York City Department of Investigation, Homeland Security Investigations, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Department of Labor Office of Inspector General.