Armonk Exec Admits To Accepting $500K+ In Bribes: Feds

ARMONK, NY — An Armonk man has admitted to his role in soaking homeowners who filed insurance claims for sewer and water pipe repairs.

On Friday, in Brooklyn federal court, George Djurasevic entered a guilty plea to bribery, in violation of the Travel Act, admitting that he accepted more than half-a-million dollars in bribe payments in his role as a manager of a company contracted by the NYC Water Board (NYCWB) to provide sewer and water pipe repair services to NYC homeowners. The 54-year-old also pleaded guilty to tax evasion on his ill-gotten gains.

When sentenced, Djurasevic faces a total of 10 years in prison.

"Motivated by greed, Djurasevic flushed away his integrity, accepting bribes and leaving New Yorkers to pay the bill, including when home repairs were not even completed,” U.S. Attorney Breon Peace said in a statement announcing the plea deal. "That the process of overseeing city contracts on warranties for costly repairs was corrupted is a betrayal to New York homeowners."

According to court documents, the company Djurasevic oversaw was awarded a multi-million-dollar contract by the NYCWB to sell warranties to NYC homeowners covering repairs to sewer and water pipes. Djurasevic was responsible for overseeing the company’s sewer and water line repair work carried out by the company’s plumbing sub-contractors in Staten Island, Queens and Brooklyn.

Djurasevic accepted approximately $500,000 in bribes over five years from a sub-contractor in exchange for, among other things, allowing the sub-contractor to overbill for work performed or to not perform certain repairs to the homeowners’ sewer and water pipes, as well as for his review of the sub-contractor’s determination as to whether repairs were covered by the company’s warranty.

"As he admitted with today’s plea, Mr. Djurasevic abused his position for personal gain and passed the tab on to New York City taxpayers," FBI Assistant Director-in-Charge Michael J. Driscoll, Jr. said. "Those responsible for helping their fellow citizens obtain basic utility services have a duty to do so in an honest manner, not one motivated by greedy self-interest. The FBI and our partners remain dedicated to bringing those who take bribes at the expense of the public to justice."

Djurasevic also failed to report his true income to the Internal Revenue Service, which resulted in his failure to pay more than $114,000 in taxes.

"Djurasevic lined his pockets with ill-gotten gains and left the people of New York City to pay the tab," Special Agent in Charge for IRS:CI in New York, Thomas M. Fattorusso said. "He then underpaid his taxes by more than a hundred thousand dollars, revenue used to fund programs for Americans who need it. It is clear that Djurasevic had little regard for the collateral damage of his schemes, and with this guilty plea he is one step closer to justice."

The government’s case is being prosecuted by the office’s Public Integrity Section.