Construction giant Structure Tone admitted to defrauding several law firms, banks and advertising agencies out of millions over a four-year period. The firm pleaded guilty yesterday in New York State Supreme Court.
Structure Tone, which was tapped to construct Sony’s new Madison Avenue headquarters, also said it would forfeit $55 million related to the scheme. The company’s specialty is building interiors and office space. It arranged for subcontractors to add millions in inflated costs of office space for Bloomberg, Bank of America and others between 2005 and 2009.
“Interiors construction is a multibillion-dollar industry in New York City and is vital to our city’s economy,” Cyrus Vance, Manhattan district attorney, said in a statement provided to the New York Times. “Structure Tone’s felony plea and forfeiture of $55 million — one of the largest forfeiture penalties ever imposed on a construction company — sends a clear message that this type of criminal activity will not be tolerated. This plea agreement addresses the severity of Structure Tone’s criminal conduct, while taking into consideration the remedial actions the company has implemented.” [NYT] — Mark Maurer