Juan Mercado, a former superintendent for the New York City Housing Authority (NYCHA), has been sentenced to 48 months in prison. The sentencing follows his admission of accepting over $300,000 in bribes from contractors. These payments were made in exchange for awarding no-bid contracts or approving payments on existing contracts at NYCHA developments.
The sentence was handed down by U.S. District Judge Valerie E. Caproni, who also oversaw Mercado's guilty plea. Danielle R. Sassoon, the United States Attorney for the Southern District of New York, emphasized the breach of public trust involved: "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."
NYCHA is noted as the largest public housing authority nationwide and receives significant federal funding annually from the U.S. Department of Housing and Urban Development (HUD). Typically, outside contractor services require a bidding process unless under certain contract value thresholds where superintendents could select contractors without multiple bids.
Mercado served as superintendent across various Queens-based NYCHA developments from at least 2014 through July 2023. During this time, he solicited payments ranging between $500 and $2,000 per contract on numerous occasions—ultimately amassing around $329,300 linked to about $1,886,000 worth of contract work.
In February 2024 alone, 70 individual NYCHA employees faced charges related to bribery and extortion offenses; most have since pled guilty or been convicted.
Authorities encourage anyone with information regarding illegal conduct by NYCHA employees to contact OIGNYCHA@doi.nyc.gov or call (212) 306-3356.
In addition to serving time in prison, Mercado has been ordered three years of supervised release post-incarceration and must pay restitution equal to the amount received through bribes: $329,300.
Ms. Sassoon commended investigative efforts led by multiple agencies including the New York City Department of Investigation and Homeland Security Investigations among others—all working collaboratively within specific task forces like HSI Document & Benefit Fraud Task Force.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation aimed at dismantling criminal organizations using coordinated multi-agency strategies underpinned by intelligence-led prosecution efforts spearheaded here primarily via Assistant U.S Attorneys Jerry J Fang et al., assisted further administratively via Paralegal Specialist Nandita Vasantha throughout proceedings.