Juan Mercado, a former superintendent for the New York City Housing Authority (NYCHA), has been sentenced to 48 months in prison. The sentence was handed down by U.S. District Judge Valerie E. Caproni after Mercado pleaded guilty to soliciting and accepting over $300,000 in bribes from contractors. These bribes were given in exchange for awarding no-bid contracts or approving payments on existing contracts at NYCHA developments.
Danielle R. Sassoon, the United States Attorney for the Southern District of New York, stated: "As a public housing superintendent, Juan Mercado held a position of public trust. For years, Mercado abused his position by demanding and accepting more than $300,000 in bribes in connection with repair work at NYCHA developments – money that should have gone to improving the lives of NYCHA residents. As today’s sentence shows, corruption will not be tolerated at any level of government."
NYCHA is the largest public housing authority in the United States and receives significant federal funding annually from the U.S. Department of Housing and Urban Development (HUD). Contracts for repairs or construction typically require a bidding process unless they fall below a certain value threshold, allowing designated staff like superintendents to hire contractors without multiple bids.
Mercado served as a superintendent at various NYCHA developments in Queens from 2014 through July 2023. During this period, he demanded bribes ranging from 10% to eventually 20% of contract values from contractors seeking work approval or contract awards under his supervision. In total, he accepted approximately $329,300 linked to about $1,886,000 worth of contract work.
The investigation revealed that out of 70 NYCHA employees charged with bribery and extortion offenses as part of an operation announced in February 2024, 60 have pled guilty while three were convicted after trial.
In addition to his prison term, Mercado was sentenced to three years of supervised release and ordered to pay restitution and forfeiture totaling $329,300 each.
U.S. Attorney Sassoon acknowledged the collaborative investigative efforts by several agencies including the New York City Department of Investigation and Homeland Security Investigations among others.
This case forms part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation aimed at dismantling criminal organizations through coordinated agency efforts.
Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Catherine Ghosh, Meredith C. Foster along with Paralegal Specialist Nandita Vasantha are handling this prosecution within the Office's Public Corruption Unit.
