Contractor allegedly steals $1.2M from Citadel Investment in office build out

New York /
May.May 16, 2012 10:00 AM

Another construction contractor has been charged with stealing millions from high-profile Manhattan office clients. The New York Times reported Aragon CEO Alex Getelman was hit with grand larceny charges by Manhattan District Attorney Cyrus Vance Jr. for overcharging hedge fund Citadel Investment Group by $1.2 million to build out its office space at 601 Lexington Avenue.

Getelman also allegedly failed to declare the extra income and pay the $286,000 tax bill associated with it. Getelman, who had said his firm specializes in hedge fund office build outs, pled not guilty.

The Times noted that this is part of a wide-ranging investigation by the district attorney’s office. It has interviewed nearly 100 subcontractors, and clients including Goldman Sachs and Bank of America, in the wake of the indictment of four Lehr Construction Corporation for overbilling by tens of millions of dollars. MDA Contracting, Sween & Harking Carpentry, Dry Wall Corporation and Liberty Contracting have all been charged with similar schemes in recent years.

Prosecutors charge that Getelman used the proceeds from the inflated invoices to help pay for a mansion on 3.3 acres in Old Brookville, N.Y. [NYT]


Related Articles

arrow_forward_ios
Doctors and medical professionals have remained on time with their rent payments in the past year (iStock)
Medical offices are just what the doctor ordered for landlords
Medical offices are just what the doctor ordered for landlords
Cerberus Global Investments President Lee Millstein
Cerberus raises nearly $3B for new real estate fund
Cerberus raises nearly $3B for new real estate fund
Zigg Capital's Dave Eisenberg and Ryan Orley (Zigg, iStock)
Zigg Capital nabs $225M to invest in proptech startups
Zigg Capital nabs $225M to invest in proptech startups
NFT-based game The Sandbox is allegedly worth $37 million. (Getty, The Sandbox)
Digital “land” in video games attracts NFT investors
Digital “land” in video games attracts NFT investors
135 West 29th Street and Kaufman Organization CEO Edward Hart (Google Maps, Kaufman)
Kaufman Org closes on $35M ground lease deal
Kaufman Org closes on $35M ground lease deal
TRD Tips: Bradley Tusk gives a crash course on SPACs
TRD Tips: Bradley Tusk gives a crash course on SPACs
TRD Tips: Bradley Tusk gives a crash course on SPACs
Hedge fund manager Robert Citrone (Getty)
This “Tiger Cub” hedge funder owns nearly 10% of Compass
This “Tiger Cub” hedge funder owns nearly 10% of Compass
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
arrow_forward_ios

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

Loading...