Retired Chief Brian Cordasco was arrested at home on Staten Island and retired Chief Anthony Saccavino was arrested at home in Manhattan, the sources said.
The FBI had searched their homes and offices earlier this year. The FDNY placed the chiefs on modified duty at the time. The New York City Department of Investigation searched FDNY headquarters as well.
The investigation focused on whether the chiefs took money to help expedite building inspections, the sources said.
Saccavino and Cordasco "repeatedly abused their positions of trust as high-ranking officials in the New York City Fire Department" by soliciting and accepting tens of thousands of dollars in bribe payments in exchange for providing preferential treatment to certain individuals and companies, according to an indictment unsealed Monday in Manhattan federal court.
The two men were chiefs with the FDNY Bureau of Fire Prevention that regulates the installation of fire safety and suppression systems in commercial and residential buildings. For nearly two years, the indictment said, Saccavino and Cordasco misused this authority for their own financial gain.
Saccavino and Cordasco created a "VIP lane" in exchange for bribe payments totaling $190,000, U.S. Attorney Damian Williams said.
There's no evidence the scheme compromised the safety of any building but it "eroded the public's trust" and "tarnished" the FDNY, said FBI assistant director James Dennehy.
According to the indictment, Cordasco publicly complained about a so-called City Hall List of building projects that should be prioritized by FDNY inspectors.
Mayor Eric Adams, who is facing multiple corruption investigations, including one involving expedited building inspections, said the alleged corruption against the retired chiefs began under a different mayor.
"It started under the previous administration," Adams said. "When the fire commissioner Laura Kavanaugh became aware of it she reported it."
The matter is believed to be separate from the similar investigation involving Adams and his 2021 campaign, which is under investigation over fundraising and whether there was illegal foreign money in exchange for expediting the inspection of the new Turkish consulate.
The current fire commissioner, Robert Tucker, pledged the department's cooperation.
"Every member of the FDNY takes a sworn oath to conduct themselves honestly and ethically. Anything less will not be tolerated. The Department will fully cooperate with any ongoing investigations. Keeping New Yorkers safe remains our top priority," Tucker said.
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