“Charles Brass, President of Housing Development Corporation (HDC), David Boccio, Senior Vice President and General Counsel of HDC, Harry Fried, Senior Vice-President and Chief Financial Officer of HDC, have resigned, effective immediately.

“The individuals affected by today's actions were officers of HDC.  As such, each had a fiduciary responsibility to protect the interests of HDC.  They each failed. Their significant lapses in judgment or failures to report evidence of wrongdoing to law enforcement officials in a timely manner impeded the criminal investigation.

“Because we did not wish to interfere with the criminal case that resulted in indictments, we held off on taking these actions until now.

“HDC’s mission of encouraging private investment to spur the development of affordable housing and the project that are in the pipeline should not be disrupted as a result of today’s management changes.  William Traylor, presently HDC’s Senior Vice President of Public Finance, is expected to be named acting President of HDC at a special HDC board meeting that has been called for tomorrow.  Traylor has more than 20 years of experience in affordable public housing and was, until recently, President of the Richman Group of New York.  He joined HDC as Senior Vice-President in March and also serves as Deputy Commissioner of Development at the Department of Housing Preservation and Development.”