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YPD's dealings with MDB Development, led by Michael DeBellas, have raised concerns among city officials due to the company's involvement in a kickback scheme and its association with shell companies accused of stealing funds from clients, including those involved in city government construction contracts. Despite being indicted on criminal charges at the beginning of 2023, MDB was still used by NYPD for scaffolding maintenance at their headquarters, leading to a $5.4 million contract request which was rejected by Comptroller Brad Lander's office due to concerns about corruption.
The NYPD's decision to continue working with MDB despite the indictment has raised questions about their procurement practices. Deputy Comptroller for Contracts Charlette Hamamgian stated that other procurement methods were possible and practicable, and should have been utilized instead of proceeding with an emergency vendor despite knowledge of procurement-related indictments.
Since January 2023, MDB has been paid $816,000 by NYPD, some of which was likely drawn as late payments from the original contract. This has raised further concerns about the transparency and accountability of the NYPD's financial dealings.
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