CORRUPTION
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posted by Bob at Sunday, April 29, 2007
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Sunday, April 29, 2007
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Conscience is the light of the Soul that burns within the chambers of our psychological heart. It is as real as life is. It raises the voice in protest whenever anything is thought of or done contrary to the righteousness. Conscience is a form of truth that has been transferred through our genetic stock in the form of the knowledge of our own acts and feelings as right or wrong. A virtuous and courageous person can alone use the instrument of conscience. He or she can alone hear the inner voice of the soul clearly. In a wicked person this faculty is absent. The sensitive nature of his / her conscience has been destroyed by sin or corruption. Hence he or she is unable to discriminate right from wrong. Those who are leading organizations, business enterprises, institutions and governments should develop this virtue of the ability to use their own conscience. This wisdom of using the clean conscience will enable them to enjoy the freedom.
Dr APJ Kalam, President of India given during the inauguration of the seminar on “THE EFFECTS OF CORRUPTION ON GOOD GOVERNANCE AND HUMAN RIGHTS
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14 Comments:
United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
APRIL 12, 2007 YUSILL SCRIBNER,
REBEKAH CARMICHAEL
PUBLIC INFORMATION OFFICE
(212) 637-2600
MANHATTAN U.S. ATTORNEY CHARGES FORMER CO-OP CITY BOARD
PRESIDENT AND CRIMINAL ASSOCIATE WITH BRIBERY SCHEME
$100,000 IN ALLEGED CASH KICKBACK PAYMENTS EXCHANGED
TO SECURE PAINTING CONTRACT WORTH $3.5 MILLION
MICHAEL J. GARCIA, United States Attorney for the
Southern District of New York, KRISTINE HAMANN, New York State
Inspector General, RENE FEBLES, Special Agent-in-Charge of the
United States Department of Housing and Urban Development, Office
of Inspector General in New York ("HUD"), and MARK J. MERSHON,
Assistant Director-in-Charge of the New York Office of the
Federal Bureau of Investigation ("FBI"), announced today the
unsealing of an Indictment charging IRIS HERSKOWITZ BAEZ, the
former President of the Board of Co-Op City in the Bronx, New
York, and NICKHOULAS VITALE, a former painter in the Restoration
Department at Co-Op City, with participating in a bribery scheme
involving the exchange of $100,000 in cash kickback payments for
a Co-Op City painting contract worth $3.5 million. As alleged in
the Indictment:
Co-Op City is a New York State Mitchell-Lama housing
cooperative located in the Bronx, New York. As a Mitchell-Lama
development, Co-Op City was established for the purpose of
providing affordable housing for middle-income residents. To
effectuate that purpose, Mitchell-Lama developments such as Co-Op
City charge rents that are considerably lower than the rents that
qualified residents would have to pay for comparable housing on
the open market.
The New York City Housing Authority ("NYCHA") is a New
York City agency responsible for, among other things, supervising
a Section 8 rental assistance program, which program is regulated
and fully funded by HUD. As part of the Section 8 Program, HUD
pays subsidies, typically in the form of vouchers, for people to
live in private housing. HUD awarded approximately $976,000
worth of federal funding to Co-Op City in 2000, $834,000 in 2001,
and $738,000 in 2002.
-2-
Neither HUD nor NYCHA place any restriction on how Co-
Op City can spend the federal subsidies. Accordingly, the
housing cooperative was permitted to use the federal funds for
capital improvements such as renovations to, and painting of,
apartment units.
New York State, however, imposes certain regulations on
how Co-Op City may spend money on capital improvements, such as
requiring -- for any job in excess of $50,000 -- that Co-Op City
put the work out for bid, memorialize the agreement with the bid
winner in a formal contract, and subject the contract to approval
by the New York State Division of Housing and Community Renewal
("DHCR"), which regulates the housing development.
Between 2000 and 2003, BAEZ served as President, then
Secretary of the Co-Op City Board. During the same time period,
a co-conspirator not named in the Indictment ("CC-1") was an
employee of Co-Op City. From 1999 until July 2000, VITALE was
employed as a painter in the Restoration Department at Co-Op
City, and by October 2000, was employed by Stadium Interior
Painting, Inc. ("Stadium"), based in New York, New York. Between
2000 and 2003, another co-conspirator not named as a defendant in
the Indictment ("CC-2"), was the President and owner of Stadium,
and sought to do business as a vendor with Co-Op City between
2000 and 2002.
BAEZ, VITALE, CC-1, and others agreed that CC-2 would
submit a bid from Stadium for painting work at Co-Op City. In
exchange for help steering the work to Stadium, CC-2 agreed to
pay kickbacks to BAEZ, VITALE, CC-1, and others. Based on this
fraudulent arrangement, Stadium was awarded the Co-Op City
painting job in September of 2000.
At the suggestion of CC-1, the work was awarded on a
probationary basis, which made it possible for Co-Op City to
avoid entering into a formal contract with Stadium, or submitting
its decision to award Stadium the job to DHCR for its review.
From August 2000 through July 2002, Co-Op City paid
Stadium approximately $3.5 million for painting work performed at
the housing development. During the same time period, CC-2 paid
approximately $100,000 in kickbacks to BAEZ, VITALE, CC-1, and
others to carry out the bribery scheme.
BAEZ, 59, and a resident of the Bronx, New York, is
charged with one count of conspiracy, and one count of bribery
concerning a federally-funded program. VITALE, 36, a resident of
Brooklyn, New York, is charged with two counts of conspiracy, and
two counts of bribery concerning a federally-funded program. If
-3-
convicted, BAEZ and VITALE face maximum sentences of 15 years'
imprisonment and 30 years' imprisonment, respectively.
Both BAEZ and VITALE surrendered to authorities this
morning, and are expected in Manhattan federal court later this
afternoon for their initial appearance.
Mr. GARCIA stated: "This Indictment exposes corruption
at the highest levels of one of New York’s largest affordable
housing developments. The type of greed and abuse of trust
exposed by this long-term investigation harms families who rely
on publicly-funded programs to meet their housing needs, as well
as the taxpayers who fund such programs."
"New York State residents and taxpayers must have
confidence that affordable housing programs are operated
honestly, efficiently, and without favor," said Ms. HAMANN. "The
trust of 50,000 plus residents of Co-op City is violated when, as
alleged in this case, an elected Board member with broad
authority over the life of Co-op City abuses that position for
personal gain. This case also demonstrates that Co-op City
residents and others should be encouraged to bring complaints and
concerns to our attention."
"The Department of Housing and Urban Development
provides programs and services to those of our citizens often
most in need," added Mr. FEBLES. "It is all the more offensive
when certain individuals choose to disgrace themselves and to
violate the public trust by harming those programs that serve the
most vulnerable of our population. The Department of Housing and
Urban Development, Office of Inspector General remains committed
to being a stalwart for the American taxpayer and to being
steadfast in its vigorous investigations of those who seek
personal gain at the expense of those requiring relief."
Mr. MERSHON stated: "Corruption of this sort,
unchecked, causes damage on so many levels, and will not be
tolerated. There is economic impact on taxpayers and on the
intended beneficiaries of federal program dollars. There is
damage to public trust in the integrity of federal programs and
those who administer them. There is the damage caused by the
very wrong message that bribery and kickbacks are part of doing
business, when they most certainly should not be. And there is
the patently offensive result of unjust enrichment for the
wrongdoers."
Mr. GARCIA praised the investigative efforts of the New
York State Inspector General’s Office, HUD, and the FBI. Mr.
-4-
GARCIA added that the investigation is continuing.
This case is being prosecuted by the Office’s Public
Corruption Unit. Assistant United States Attorneys ALEX WILSCHER
and CHRISTINE WONG are in charge of the prosecution.
The charges contained in the Indictment are merely
accusations and the defendants are presumed innocent unless and
until proven guilty.
07-90 ###
Sounds like business as usual in the city of St.Paul.
Trust in Governemnt? LOL.......you've got to be kidding. did you forget what city you are in?
You douche bags, for your information the story is about the Bronx!
Bob could post a story here about the Como Conservatory and flowers, you people would make a City of Saint Paul topic of it.
SlumlordCentralblogspot
10:18
Looks like Chuck is posting again.
10:18
You seem to have an attitude about everything you read here, yet you continue to come back. Do you really think we don't realize what state and city the article is referring to? It is being used here at A Democracy as a comparison to the same tactics the city of St.Paul is using, "corruption"!
WE should invite Mr.Repke to the site to talk about his development and whether its been a success or not.
The article is being used here as a reminder to the city officials that their bad deeds are not going to go unpunished....it just takes a while sometimes. The article shows that the government types are not above the law. Couple with that the fact that we have a new US Attorney that has a passion for these types of housing discrimination issues and she needs to build a name for herself right now.
Keep it up St Paul....your day is coming....hopefully not before the Republican convention next year though. It would be a shame to lose the opportunity to show the rest of the world what you are all about....especially since the local press are such cowards that they're just not up to the job.
OK hot shot, name a single Saint Paul City official who has been even questioned for a crime.
Tell us who has been arrested?
You can't, because it hasn't happened.
Our City officials work countless hours for very low pay and in return they get dirt that doesn't stick thrown at them by people at this web site.
Shameful.
Shameful said at 5:08 PM
Because it hasn't happened "YET"!
Our City officials, could be arrested at anytime.
St.Paul City official, who has been
getting their palms greased ... MMM
The Question is crime, its OK as long as you are a city hot shot.
Soon, we can name many of the-- City Slickers aka Developers !
>>>>>>>>>>>>>>>>>>>>>>>>...
http://www.lesliedavis.com
>>>>>>>>>>>>>>>>>>>>>>>>...
Watch The Leslie Davis Show --
Tuesday 7 pm ch.15 cable access.
It will talk about Susan Geartner and her roll in many cover-ups, over her year as a Ramsey County Attorney.
Bill Dahn
5:08 I will put 5,000 dollars Stave Magner with the vacant buildings division is charged with in the next 1 1/2 year.Thats a shoe in.Now put your money where your mouth is hot shot!!!
Someone who knows the inside
Thats Steve Magner.
5:08 PM
Shameful.
They work for low pay is a joke. Ha-Ha! Like 7:10 said greased palms, and gratuities. Look at Chuck Repke.
We are watching closer then ever, the slime that runs St.Paul needs a bath.
Hot cooking oil, will do fine.
Then their friends at E-democracy can eat,cock tail wieners hot off the stump.
Hay "Dave Thune", did you fix the exterior of your home?
Who's next, for the chopping block? Chris Coleman?
Steve, do you read a-Democracy daily.
I bet the 7 little piggies in city council, and Daddy Pig The Mayor reads this blog!
Good Morning "St.Paul".
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