A full-scale investigation has been launched into the operations of New York City Transit’s Law Department after a supervisor’s alleged fraud and kickback scheme, the MTA’s inspector general said yesterday.
The sweeping probe was sparked by the suspected misdeeds of supervisor Jacqueline Jackson, who is also being investigated by the Brooklyn District Attorney’s Office for allegedly overcharging NYCT on behalf of a legal-services company and sharing in the ill-gotten gain.
“We are engaged in a thorough analysis of the procurement practices, internal controls, and other systemic weaknesses that may have provided the breeding ground for the alleged corruption,” said IG Barry Kluger.
Jackson is accused of fraudulently billing Brooklyn-based AJI Records Retrieval.
NYCT has used the firm for years, and overall paid it about $1.5 million for retrieving doctor and insurance records that could be used in lawsuits against the agency, authorities said.
But yesterday, NYCT spokesman Paul Fleuranges said that there was never a formal contract established with the company, and would not say whether the billed services were ever rendered.
Jackson’s salary was about $83,000 a year. She was suspended from her job yesterday when authorities raided her home and office.