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

May 16, 2012 10:00AM

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]