Runway Towing is taking a bold step, filing a $150 million lawsuit against the city over alleged bribery and corruption.
At a Glance
- Runway Towing filed a $150 million lawsuit against New York City, alleging corruption led to their license revocation.
- The suit claims Eric Ulrich, a former city official, accepted bribes from a rival towing company owner.
- An appeal upheld the revocation decision despite a judge’s previous ruling deeming it “too harsh.”
- The alleged bribery scheme caused substantial financial harm to Runway Towing.
Runway Towing Files Landmark Lawsuit
A $150 million lawsuit filed by Runway Towing accuses city officials of bribery and corruption, resulting in the unwarranted revocation of their contracts and operating license. The lawsuit alleges Eric Ulrich, former Department of Buildings commissioner, accepted bribes from Michael Mazzio, owner of a rival towing company. This purportedly set off a chain of events where the Department of Consumer and Worker Protection (DCWP) denied Runway’s license renewal.
Runway Towing’s contract revocation allegedly hinged on minor overcharging discrepancies identified by the DCWP during their license renewal in 2021. Despite a judge ruling the punishment “too harsh,” an appeals court upheld the decision, leading to Runway Towing’s operations ceasing and a financial loss of $10 million annually.
Details of the Alleged Corruption Scheme
The lawsuit outlines that Ulrich received bribes from Mazzio to pressure the DCWP into revoking Runway Towing’s license. According to the allegations, this scheme was part of a $150,000 bribery plot to allow Mazzio to regain control over New York City’s towing industry. Runway Towing claims this illicit activity severely harmed their business and reputation.
“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 city law department has thus far refrained from commenting on the ongoing litigation, but the DCWP has formally denied any corruption allegations, emphasizing that their decision was unanimously upheld by an appeals court. This ongoing legal battle resonates with the broader investigation led by the Manhattan District Attorney in 2023, which resulted in the indictment of Ulrich, Mazzio, and others on multiple bribery charges.
Impact on Runway Towing and Broader Legal Implications
This lawsuit serves as part of a broader series of legal actions tied to corruption within the towing industry. David Chiu, the City Attorney, had previously moved to suspend Auto Towing and affiliated companies from city contracts due to similar allegations of fraud and illegal towing practices. Chiu emphasized the importance of protecting the public from exploitative business behaviors.
“Auto Towing intentionally misled and scammed people out of hundreds of dollars by illegally towing cars and making them hard to retrieve,” said City Attorney Chiu. “Now we also know that they took advantage of the public and defrauded our safety net programs. Fuentes and Badillo have demonstrated a clear pattern of predatory behavior designed to enrich themselves at the expense of the most vulnerable among us. Our City has no interest in contracting with exploitative businesses engaged in illegal conduct.”
This case highlights the pervasive issues of corruption and bribery affecting municipal operations and private enterprises. The outcome of Runway Towing’s lawsuit may set a precedent for how cities across the United States handle similar allegations and governance issues.
