On February 21, 2019, Joyce Harvey-Madu, wife of Ifeanyi Madu, former manager at the New York City Department of Environmental Protection (DEP), pleaded guilty in New York State Supreme Court, New York, New York, to one count of a scheme to defraud in the second degree. She was sentenced to a 1-year conditional discharge, $1,000 fine, and $250 in court costs.
On November 28, 2018, Ifeanyi Madu pleaded guilty to receiving bribes. He acknowledged that he had leaked confidential information for city contracts, giving certain construction management companies, including Haider Engineering, P.C. (Haider), a competitive edge over other bidders. He was rewarded with extravagant meals, gifts, hotel stays, theater tickets, and the award of more than $7.5 million in subcontracts to companies owned or operated by his wife, other family members, or close friends.
On March 26, 2019, Haider entered into a Deferred Prosecution Agreement with the Manhattan District Attorney’s Office (DANY). Haider agreed to forfeit $1 million and accept an integrity monitor. The company also accepted responsibility for the conduct of its former president, Syed Haider, who has been charged with paying bribes and kickbacks to Ifeanyi Madu.
Harvey-Madu’s plea and the agreement between DANY and Haider followed a wide-scale investigation into corruption and fraud connected to the Kosciuszko Bridge Reconstruction Project funded by the Federal Highway Administration and subway projects funded by FTA through the New York State Metropolitan Transportation Authority. The investigation revealed that Harvey-Madu, Haider, and others 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
DOT-OIG conducted this investigation with DANY’s Construction Fraud Task Force.