Construction company received kickbacks from subcontractors, Manhattan DA alleges

New York /
Jan.January 27, 2010 02:02 PM
Builders Group project sites from left: St. Vincent’s Hospital, St. Ann’s School, the Carlyle Hotel. The projects were not specifically cited by the DA’s office in the press release.

The Builders Group, a Manhattan construction company, has been indicted on charges connected to an alleged scheme to inflate construction costs for interior building projects across the tri-state area, Manhattan District Attorney Cyrus Vance announced today.
The group, along with three of its top executives, has been charged with submitting false invoices from subcontractors to developers of various building projects, and collecting the extra money through kickbacks from those subcontractors.

Between 2006 and 2009, the Builders Group, acting as construction manager for condo conversions and office renovations, conspired with subcontractors to overcharge clients by an estimated 10 percent for construction materials after negotiating for a lower price, according to the DA’s office. The difference, prosecutors allege, was then secretly returned to the Builders Group in the form of credits for past debt or directly.

The company, whose repertoire of projects — according to its Web site — include a trauma center at St. Vincent’s Hospital, a laboratory at St. Ann’s School in Brooklyn and boutiques at the Carlyle for London jeweler Asprey, has denied any wrongdoing. The Builders Group and the three executives, president George Figliolia, chief financial officer Isaac Stareshefsky and vice president John Krupa, “intend to vigorously defend against these allegations,” their attorneys said in a statement. “When this case is resolved… it will be clear that no funds were unlawfully taken from any client or sub-contractor, all work was done in full compliance with industry standards and all contractual obligations were fully honored,” the statement said. TRD


Related Articles

arrow_forward_ios
A rendering of
Justice Avenue Tower
in Elmhurst
Charter school expansions pick up amid pandemic
Charter school expansions pick up amid pandemic
Cyrus Vance (Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Prosecutor pushes for more LLC transparency
Prosecutor pushes for more LLC transparency
High demand and low supply has driven house prices up (iStock)
Investors building single-family rentals to meet demand
Investors building single-family rentals to meet demand
Manhattan district attorney Cy Vance, Paul Manafort, and President Donald Trump (Getty)
DA moving forward with Manafort case after Trump pardon
DA moving forward with Manafort case after Trump pardon
20 West 33rd Street (20West33rd)
Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Carlyle CEO Kewsong Lee and 24-02 Queens Plaza South in Long Island City (Getty; Atlas Capital)
Carlyle Group pockets $40M LIC trade school building
Carlyle Group pockets $40M LIC trade school building
Manhattan District Attorney Cyrus Vance and President Donald Trump (Getty, iStock)
Trump lawyers, resisting subpoena, demand more details of Manhattan DA inquiry
Trump lawyers, resisting subpoena, demand more details of Manhattan DA inquiry
Mayor Bill de Blasio with Jing Fong at 20 Elizabeth Street in Chinatown and St. John the Divine at 1047 Amsterdam Avenue in Morningside Heights (de Blasio by Noam Galai/Getty Images; Jing Fong via Facebook; St. John the Diving via Google Maps)
Schools are racing to lease extra space for socially distanced classes
Schools are racing to lease extra space for socially distanced classes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...