A World Trade Center contractor who pretended to work alongside women- and minority-owned businesses was found guilty for fraudulently landing $1 billion worth of work from the Port Authority.
Capping a seven-day trial, a Manhattan federal jury found Larry Davis, owner of steel company DCM Erectors, guilty of wire fraud and conspiracy to commit wire fraud, the New York Post reported. He faces up to 40 years in prison.
Prosecutors charged Davis with criminal fraud in 2014 for falsely claiming he was complying with requirements to hire minority and female subcontractors in order to land lucrative job contractors from the Port Authority of New York & New Jersey . DCM Erectors ultimately snagged two contracts worth $600 million for 1 World Trade Center and the transit hub; the contracts grew to almost $1 billion, according to prosecutors.
During the seven-day trial, prosecutors said Davis falsified business records and work orders to give off the appearance of complying with hiring rules. In particular, subcontractors Johnny Garcia and Gale D’Aloia set up set up an entity known as GLS Enterprises to help Davis land the contracts.
Last week, Garcia — an Ecuadorian subcontractor — testified that he served as a front for Davis to land the WTC work. The president of Solera Construction, who pocketed $2 million for his role in the scheme, said he “basically was playing the minority card.” When asked what he did in exchange for the money, Garcia said, “basically nothing.” [NYP] — E.B. Solomont