November 28, 2018
Former New York City Manager Pleads Guilty To Receiving Bribes From Contractors Working on DOT-Funded Projects
On November 28, 2018, Ifeanyi Madu, a former mid-level manager at the New York City Department of Environmental Protection, pleaded guilty in State court to bribe receiving in the first degree, a class B felony.
On April 18, 2018, the Manhattan District Attorney’s Office (DANY) announced the indictments of Madu, and others, in a wide-scale investigation into corruption and fraud connected to projects funded by DOT. Specifically, the investigation examined the Kosciuszko Bridge Reconstruction Project funded by the Federal Highway Administration and various subway projects funded by the Federal Transit Administration through the New York State Metropolitan Transportation Authority. The defendants allegedly participated in schemes involving bribery; fraud related to Disadvantaged, Minority, and Women-Owned Business Enterprise programs; and illegal campaign contributions from construction companies and high-level executives.
Madu acknowledged that, between 2007 and 2016, he leaked confidential information about city contracts to certain construction management companies—including HAKS Engineers, Architects, and Land Surveyors, D.P.C., and SIMCO Engineering, P.C.—and their executive officers. As a result, the companies gained a competitive edge during the procurement and bidding process. In return, Madu was rewarded with extravagant meals, gifts, hotel stays, Broadway show tickets, and $7.5 million in subcontracts to companies owned or operated by members of his family or close friends, including CIMC Associates, LLC; JCMS Associates, LLC; JCMS Associates of NY, LLC; and MCC General Office Services, LLC. CIMC was owned by Madu’s wife at one point and later by his niece. MCC listed his mother-in-law as the owner; and JCMS Associates was controlled by Madu’s former assistant at the Department of Environmental Protection.
DOT-OIG conducted this case with DANY’s Construction Fraud Task Force.