United States: CEO Of NYC Non-Profit Charged In Bribery And Kickbacks Scheme Involving Publicly Funded Housing And Social Services

Audrey Strauss, the United States Attorney for the Southern District of New York, and Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of VICTOR RIVERA on charges of honest services fraud and money laundering. As alleged in an Information filed today in Manhattan federal court, RIVERA, while leading a non-profit organization (“Organization-1”) that operated soup kitchens, homeless shelters, and affordable-housing facilities in New York City, schemed to enrich himself through bribes and kickbacks from Organization-1’s contractors. RIVERA will be presented and arraigned later today before United States District Judge Sidney H. Stein.

Manhattan U.S. Attorney Audrey Strauss said:  “Many of the over 8.4 million residents of New York City rely on government-assisted non-profits to provide food, affordable housing, and other essential services for their well-being. As alleged in today’s charges, by accepting bribes and kickbacks, Victor Rivera sought to leverage his position as the CEO of a non-profit into a very much for-profit situation for himself.  The vast majority of organizations in New York City’s non-profit networks honourably provide assistance to those in need, but when any individual selfishly exploits one of those organizations for their own personal gain, they will find themselves facing criminal charges for corruption.”

DOI Commissioner Margaret Garnett said:  “As CEO of a City-funded nonprofit, this defendant should have been serving the underprivileged, including the homeless;  instead, according to the criminal information, he schemed to enrich himself and his relatives, taking bribes and kickbacks from those doing business with his organization. New York City provides billions of dollars to support nonprofits, many of which run organizations with integrity and provide valuable, essential services. But corruption at nonprofit social services contractors remains an investigative priority for DOI, and today’s arrest should serve as notice to any individual who sees the City’s coffers as a path to personal profit. DOI thanks the U.S. Attorney’s Office for the Southern District of New York for its partnership and commitment to this important corruption investigation.”

The original full article can be found at justice.gov

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