A towing company is suing New York City for $150 million, alleging corruption led to the loss of its lucrative contracts and operating license.
At a Glance
- Runway Towing filed a $150 million lawsuit against New York City
- Former Buildings Commissioner Eric Ulrich accused of accepting bribes
- Lawsuit claims corruption led to revocation of Runway Towing’s license
- Company lost $10 million annual business due to license denial
- Case aligns with 2023 indictment of Ulrich and others for bribery
Towing Company Alleges Corruption in License Revocation
Runway Towing has filed a $150 million lawsuit against New York City, claiming their contracts and operating license were revoked due to corruption involving a city official and a rival towing company. The lawsuit names former Department of Buildings commissioner Eric Ulrich as a key figure in the alleged bribery scheme.
According to the legal filing, Ulrich allegedly accepted bribes from Michael Mazzio, owner of Mike’s Heavy Duty Towing, Inc. The lawsuit asserts that Ulrich used his influence to pressure another agency to revoke Runway Towing’s license as part of a $150,000 bribery arrangement.
License Denial and Legal Challenges
The Department of Consumer and Worker Protection (DCWP) denied Runway Towing’s license renewal in 2021, citing minor overcharging discrepancies. Despite a judge initially ruling the decision as “too harsh,” the agency’s appeal ultimately made the denial final. This resulted in Runway Towing losing its $10 million annual business and ceasing operations.
“A towing company says their lucrative city contracts and operating license were eliminated because of the ‘bribery and corruption’ of a city official and a towing-industry rival,” according to a newly filed $150 million lawsuit naming the city.
The lawsuit contends that the agency’s decision was influenced by corruption, a claim that DCWP denies. The department maintains that their decision was upheld by a unanimous appeal court ruling, suggesting the legitimacy of their actions.
Connections to Broader Corruption Investigation
The allegations in Runway Towing’s lawsuit align with a 2023 indictment by the Manhattan District Attorney’s office. This indictment charged Ulrich, Mazzio, and others with bribery, lending credibility to the towing company’s claims. Ulrich, who is facing 16 felony charges, resigned from his position in November 2022 and has requested a taxpayer-funded attorney.
“Eric Ulrich took bribes from Michael Mazzio in exchange for helping Mazzio’s tow truck company . . . injure Runway Towing Corp., by ensuring that it would be investigated and its license revoked by the DCWP, so that Michael Mazzio could regain control of the New York City highways,” the suit claims.
The case has drawn attention to potential corruption within city agencies and the towing industry. It highlights the need for transparency and oversight in government contracting and licensing processes. As the lawsuit progresses, it may reveal further details about the alleged bribery scheme and its impact on fair competition in the towing industry.
Attorneys for the involved parties and the city’s law department have not commented on the new lawsuit, leaving many questions unanswered as the legal process unfolds. The outcome of this case could have significant implications for how city contracts are awarded and monitored in the future.
