Nine New York City contractors, including A. Peter Luger Construction Inc., have been indicted on charges of bribery and corruption for allegedly offering kickbacks to New York City Housing Authority (NYCHA) superintendents. The scheme, uncovered by the Brooklyn District Attorney’s office and the Department of Investigation (DOI), involved “micro purchase” contracts, designed for swift, small-scale repairs, but exploited for illicit gains.
Brooklyn District Attorney Eric Gonzalez stated, “These defendants allegedly attempted to gain unfair advantages in securing NYCHA contracts by bribing superintendents. This corruption undermines the integrity of a system intended to ensure fair contract allocation.” He commended the NYCHA employees who reported the bribe offers, triggering the investigation, and affirmed his office’s commitment to combating bribery and corruption.
NYCHA’s micro purchase system allows superintendents or assistant superintendents at housing developments to directly select vendors for repairs under $10,000, bypassing the competitive bidding process required for larger projects. This decentralized system, intended for efficiency, became vulnerable to exploitation.
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The investigation revealed that contractors allegedly offered bribes to NYCHA superintendents to secure these micro purchase contracts. The indicted individuals and their companies are:
- Lakhwinder Kumar, 47, and Kumar Construction Corp., South Ozone Park, Queens
- Charanjit Singh, 58, Satbir Singh, 71, and Fine Touch Construction, Floral Park, Queens
- Davinder Singh, 45, Nishan Singh, 56, Yuvi Development Inc., and NB Builders, Hicksville, New York
- Surinder Singh, 59, Guriqbal Singh, 28, A. Peter Luger Construction, PKG Contracting Corp., and Heera and G. Builders, South Richmond Hill, Queens
- Jaswant Banga Singh, 57, and Khushi Construction Inc., New Hyde Park
- Bakhshish Chand, 68, and Amar Contracting, Richmond Hill, Queens
These individuals and their companies face charges including bribery, giving unlawful gratuities, offering a false instrument for filing, and conspiracy.
The investigation began in November 2018 when a NYCHA assistant superintendent in Brooklyn reported a bribe offer from Lakhwinder Kumar. Equipped with recording devices by DOI, the employee documented Kumar allegedly handing over $450 for a micro purchase contract.
In a separate incident in July 2019, Surinder Singh, associated with A. Peter Luger Construction, allegedly offered $600 cash to a NYCHA superintendent at another Brooklyn development. Despite the superintendent’s attempts to return the money, Singh reportedly insisted, leading the employee to report the incident to DOI. Singh allegedly persisted in leaving cash in the employee’s office, further prompting DOI intervention and the deployment of recording equipment.
Starting in Spring 2019, DOI deployed undercover investigators as assistant superintendents at Red Hook Houses West and Lafayette Gardens in Clinton Hill. Over several months, these undercover operatives recorded numerous contractors, including Charanjit Singh, Satbir Singh, Davinder Singh, Nishan Singh, and Guriqbal Singh, discussing jobs and delivering cash bribes ranging from $500 to $1,000 for micro purchase contracts. A. Peter Luger Construction and PKG Contracting Corp. were among those implicated through these recordings.
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The investigation expanded, uncovering further instances of bribery. Recordings captured Surinder Singh of A. Peter Luger Construction allegedly making additional bribe payments to a NYCHA employee in Brooklyn, and Jaswant Banga Singh and Bakhshish Chand allegedly bribing an employee in Queens.
Investigators allege that between December 2018 and May 2021, the defendants distributed approximately $20,000 in cash bribes and unlawful gratuities, along with gift cards and liquor, to NYCHA employees and undercover agents. These bribes were exchanged for contracts involving tile work, tub enclosure installations, fence construction, and window repairs. A. Peter Luger Construction Inc. and other companies are now under scrutiny for their involvement in these activities.
NYCHA released a statement affirming “zero tolerance” for illegal activities by staff and vendors and highlighting their cooperation with DOI throughout the investigation. They outlined implemented changes to prevent future malfeasance, including enhanced purchasing oversight, contract awarding and tracking modifications, and improved post-award contract management, all part of the Transformation Plan mandated by the 2019 HUD Agreement. NYCHA emphasized their ongoing commitment to necessary improvements.
This indictment sends a clear message: bribery and corruption within NYCHA’s contracting processes will be rigorously investigated and prosecuted, ensuring fair practices and accountability for all vendors, including A. Peter Luger Construction Inc. and the other implicated companies.
