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New York

WTC contractor to face criminal fraud charges: report

1 World Trade Center, construction work on the tower (Credit: Port Authority of New York & New Jersey)
1 World Trade Center, construction work on the tower (Credit: Port Authority of New York & New Jersey)

DCM Erectors, the contractor installing the steel skeletons of the office tower at 1 World Trade Center and the Port Authority of New York & New Jersey’s $3.4 billion transportation hub, has been targeted in federal and state probes for alleged criminal fraud.

Larry Davis, DCM’s owner, has been accused of shirking requirements to hire a particular percentage of subcontractors run by minorities or women, the New York Times reported, citing unnamed sources. By depriving the businesses of work on large projects, DCM misused millions of dollars, sources said.

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The 18-month-long investigation focused on construction at the World Trade Center Transportation Hub and the office tower. DCM has completed about $1 billion total in work so far on the projects. Davis is likely to be charged with mail and wire fraud and money laundering, the Times reported.

The Port Authority advanced money to DCM in an effort to keep the construction on track, as reported last year. [NYT] — Mark Maurer

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