Friday, January 26, 2007
Federal prosecutors in Cleveland charged three former officials with the Cleveland Housing Network, a non-profit that rented houses primarily to low-income tenants, on bribery charges for demanding kickbacks from contractors. Two defendants were Regional Coordinators with CHN and the third was a maintenance supervisor, and a press release (here) describes the alleged corruption:
[C]ertain contractors hired to perform repair and rehabilitation work on CHN properties were required to kickback a portion of money CHN paid them to a Regional Coordinator in return for continuing to receive business from CHN. The Regional Coordinators also required certain contractors to seek payment from CHN for work that the contractors had never performed and to give these payments to the Regional Coordinator in return for continuing to receive business from CHN. At times, portions of these improper payments were shared with [one defendant]. Defendants also required certain contractors to perform repair work without compensation at Defendants’ personal residences and Defendants’ relatives residences in return for continuing to receive business from CHN.