School Bus Big Arrested For Taking Payoffs

By MEREDITH KOLODNER

A Department of Education Borough Supervisor was arrested last week on charges of taking bribes from school bus companies for arranging special treatment that increased their earnings.

Geoffrey Berger allegedly pocketed thousands of dollars in exchange for giving certain companies additional and longer routes, which netted them more lucrative contracts with the city. Mr. Berger, 57, was arrested based on the testimony of two former DOE inspectors, who admitted to taking bribes, and two bus company owners, who admitted to making the illegal cash payments. If convicted, Mr. Berger faces up to five years in prison.

Union Also Corrupt

The discovery was made in the course of a long-term investigation by the FBI and the U.S. Department of Labor, which has uncovered corruption and organized-crime influence in Local 1181 of the Amalgamated Transit Union, which represents most of the school bus drivers. The DOE contracts out its school bus routes to private companies. The inquiry has also revealed corruption and organized-crime influence among many of those companies.

DOE officials declined to comment.

One informant, who admitted to receiving payments in excess of $100,000 from at least 10 different companies between 2005 and 2007, told investigators that Mr. Berger received payments from at least four of those companies. The former inspector had agreed to ensure that the companies received "extended run" bus routes, which start earlier and end later and earn higher rates.

A second informant was arrested Nov. 28, and the FBI found $110,000 in cash hidden in his residence. He said that the money was from bus company owners for "extended runs," providing extra bus routes and for favorable bus inspections. He further told investigators that Mr. Berger had received similar payments from at least five company owners and that the two men often picked up cash payments from one another.

Owners Admit Bribes

Two bus company owners admitted to making payments to the two informants and Mr. Berger. One of the owners said he paid Mr. Berger in exchange for receiving about 40 additional DOE bus runs in 2005. After the owner was subpoenaed by a grand jury in 2006, he notified Mr. Berger that he would no longer make the payments. The following year, his companies lost 37 bus runs from the DOE.

The second owner admitted that he gave payments to Mr. Berger of between $500 and $1,000 for approximately five years in order to influence his bus routing decisions. He said he made the last payment in August.

Mr. Berger was released Dec. 12 on $1 million bond and is charged with one count of conspiracy regarding bribery concerning programs receiving Federal funds. If convicted, he faces a maximum of five years in prison, three years of supervised release and a fine of more than $250,000.