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Investigation of $100M "Pay-to-Play" Construction Fraud in NYC Offices

Bloomberg may have overpaid Turner Construction for $1 million interior work

February 27, 2018
Investigators looking at Pay to Play in NYC

Gutting, designing and building the interior of metro New York office buildings is a $9.4 billion a year industry, according to the New York Times. New York's city and state investigators have been investigating what could be $100 million in interior construction fraud and have found Bloomberg's office buildings may be victims in the tangled scheme.

The investigation, part of a broader investigation of other contractors and possible victims, has focused on interior construction at various Bloomberg office buildings in which subcontractors paid bribes and kickbacks to Turner Construction and Bloomberg executives to land work in a “pay-to-play” scheme.

Investigators believe subcontractors paid rogue Turner and Bloomberg executives to secure work at the financial news and information company’s offices. The Turner and Bloomberg executives, in return, inflated the cost of the contracts. To avoid Turner’s in-house rules, the executives bypassed the company’s computers and budgeting systems.

“Years ago, New York’s construction industry was plagued by the mob,” Rod Leith, a longtime investigator and a former assistant inspector general at the School Construction Authority, told the Times. “Today, a handful of private contractors have made it a way of business to cheat, bribe and corrupt a whole sector known as the interiors industry.”

Read more in the Times' Investigators Eye Possible $100 Million Construction Fraud

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