New York City Housing Official, Six Others, Charged In Bribery Scheme

A top New York City housing official was charged with taking at least $600,000 in bribes and kickbacks in a decade-long scheme with real estate developers.

Wendell Walters, a deputy commissioner in the city's Department of Housing Preservation and Development, and six developers were each arrested in their homes in New York and New Jersey. The Wall Street Journal report on the alleged scheme is here.

They were arraigned in Brooklyn Federal Court. The alleged bribes, which Walters was charged with taking in exchange for steering millions of dollars worth of contracts on low- and middle-income housing between 2002 and 2011, were sometimes hidden in golf-ball boxes, overnight mail envelopes or rolled up in coffee cups, according to an affidavit cited in the Journal report.

"New Yorkers relied on these defendants for the safe haven of affordable housing," said Loretta Lynch, the U.S. Attorney for the Eastern District of New York, in a statement. "Instead, the defendants allegedly put their own greed over the needs of low-, moderate and middle-income New Yorkers."

The 26-count indictment charges the defendants with racketeering, extortion, bribery and money laundering.

Lawyers for all seven defendants pleaded not guilty. They all declined to comment to the Journal, as did the defendants.

Walters, who was also referred to as "The Big Man" and "The Tall Guy" in the indictment, allegedly summoned a general contractor referred to as "John Doe #1″ to multiple locations around the city to hand him a slip a paper with a number on it — usually "250," signifying a $250,000 demand, according to the indictment. In subsequent meetings, "John Doe #1″ paid Walters in cash, often in amounts of more than $25,000 at a time, according to court records.

The other defendants were business partners Stevenson Dunn, 50 and a high-school friend of Walters, Lee Hymowitz, 60, and Michael Freeman, 64; Sergio Benitez, 51; Robert Morales, 52; and Angel Villalona, 52. They were all released on bond.

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• Stevenson Dun
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• Angel Villalona