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MTA head eyes legal dealings

MTA executive Wallace Gossett

Wallace Gossett, 62, has been the director of the Transit Authority's torts division for the past 19 years. (amNewYork Photo/Lane Johnson / March 20, 2007)


The MTA Inspector General may look into the New York City Transit law department after an amNewYork investigative report published Wednesday.

The report examined how five law firms that billed the MTA more than $1.4 million last year also gave thousands of dollars to a charity that a New York City Transit official helps run. MTA regulations forbid its employees from soliciting donations from contractors, or even the appearance of such a relationship.

"I will be discussing this matter with" [MTA Inspector General Barry Kluger], said Elliot Sander, the MTA's executive director and chief executive.

At the center of amNewYork's report was Wallace Gossett, who has ultimate authority over awarding the contracts as head of New York City Transit's torts division. Gossett also sits on the board of the Northside Center for Child Development, a Harlem nonprofit group, which received thousands of dollars from the law firms that do business with New York City Transit.

New York City Transit officials denied any wrongdoing, but the practice raised the eyebrows of government and charity watchdogs.

Kluger was not available for comment.

Related topic galleries: Business Enterprises, New York City Transit, Legal Services

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