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Former Supervisory Official At Nyc Department Of Housing Preservation & Development Sentenced To 18 Months’ Imprisonment For Accepting $100,000 Bribe

FOR IMMEDIATE RELEASE
June 19, 2013

Earlier today, Luis Adorno, formerly the Supervisory Construction Project Manager of the Department of Architecture and Construction Engineering at the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 18 months, followed by 300 hours of community service, for his corruption conviction for taking bribes.  As part of his sentence, Adorno also was ordered to forfeit $100,000 in bribery money to the government, representing the proceeds of his crime, and fined $10,000.  The sentence was imposed by United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Daniel R. Petrole, Deputy Inspector General, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).

Until his arrest in June 2012, Adorno was employed by HPD, the largest municipal developer of affordable housing in the nation.  Adorno was responsible for personally conducting inspections of HPD construction projects and also supervising other inspectors.  During 2008 and 2009, a contractor who worked on several HPD construction projects paid Adorno what amounted to a $100,000 bribe for Adorno’s assistance in getting the contractor additional work with HPD.  The bribe was structured in a sophisticated manner to ensure that actual cash did not pass through Adorno’s hands.  Rather, the contractor paid $100,000 to a real estate developer who was developing several HPD projects, and in return for the $100,000, the real estate developer agreed to give Adorno a 30 percent equity stake in the developer’s company.

Today’s sentencing proceeding is the latest stemming from the government’s wide-ranging investigation into corruption involving the affordable housing industry in New York City.  Four real estate developers and two other former HPD officials have pleaded guilty in this district to various charges, including racketeering conspiracy, fraud, and bribery, related to the development of affordable housing in the City.  Three additional defendants await trial.

“Luis Adorno admitted that he agreed to put his finger on the scale in favor of a contractor who paid him $100,000 in bribes.  By receiving payment in the form of an equity stake in a real estate development company, Adorno sought to create the bribe that would keep on giving.  Today’s sentence sends a clear message that any public servant, whether an elected legislator or an appointed official, who betrays the public trust will be prosecuted to the fullest extent of the law,” stated United States Attorney Lynch.  Ms. Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development, Office of Inspector General; and the New York City Police Department for their cooperation in this case.

DOI Commissioner Gill Hearn stated, “This ex-City employee lost his job and his bribe money and will soon take up residence in a prison cell.  That was not the nest egg he bargained for when he sold his office for a hidden stake in a real estate deal.  DOI thanks our federal partners for their shared determination to unearth the facts and demonstrate again that corruption is a losing strategy.”

The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony M. Capozzolo, and Claire Kedeshian.

The Defendant:

LUIS ADORNO
Residence: Scarsdale, New York
Age: 48

 


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