Bloomberg, Turner Construction offices raided as officials investigate $100M fraud

Bloomberg may have been scammed out of $1M

New York /
Feb.February 27, 2018 08:30 AM

730 Lexington Avenue (credit: American Wood Installers)

State officials raided the offices of Bloomberg L.P. and Turner Construction as part of a larger investigation into a suspected $100 million worth of construction fraud.

Bloomberg may have overpaid Turner $1 million for interior work at Bloomberg’s office, including its headquarters at 731 Lexington, the New York Times reported. Investigators believe subcontractors, including Queens-based Jonathan Metal & Glass, paid rogue Turner and Bloomberg executives to secure work at the financial news and information company’s offices. The Turner and Bloomberg executives, in return, inflated the cost of the contracts.

No arrests have yet been made, but Bloomberg’s global head of construction, Anthony Guzzone, and another executive have been fired. Guzzone denies any wrongdoing. Industry executives told the Times that the raids are part of a larger investigation into other contractors and victims involving up to $100 million in fraud.

Last year, another subcontractor Nastasi & Associates filed a lawsuit against Bloomberg, alleging that the company engaged in a similar scheme with New Jersey-based electrical subcontractor, Litespeed Electric. Nastasi claimed Litespeed embezzled more than $100 million from Bloomberg. Investigators raided Litespeed’s offices.

“Years ago, New York’s construction industry was plagued by the mob,” Rod Leith, a longtime investigator and a former assistant inspector general at the School Construction Authority, told the Times. “Today, a handful of private contractors have made it a way of business to cheat, bribe and corrupt a whole sector known as the interiors industry.”[NYT] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
From left: Andrew Yang, Maya Wiley, Eric Adams, Scott Stringer and Kathryn Garcia (Getty, iStock)
Eric Adams leads mayor’s race after initial ballot count
Eric Adams leads mayor’s race after initial ballot count
Huge home headache hassles North Fork locals
Huge home headache hassles North Fork locals
Huge home headache hassles North Fork locals
Dianne Morales
WATCH: Dianne Morales on what progressives want from real estate
WATCH: Dianne Morales on what progressives want from real estate
BLDG Management founder Lloyd Goldman (iStock)
BLDG plans 800K-sf tower in Long Island City
BLDG plans 800K-sf tower in Long Island City
Eric Adams, Kathryn Garcia and Maya Wiley (Getty/iStock, Photo Illustration by Kevin Rebong for The Real Deal)
Real estate looks like a winner in mayor’s race
Real estate looks like a winner in mayor’s race
Kathryn Garcia backers include Extell's Gary Barnett, BFC Partners' Donald Capoccia, and L+M's Ron Moelis and David Dishy (Getty, BFC, L+M)
Gary Barnett throws $50K behind PAC supporting Kathryn Garcia
Gary Barnett throws $50K behind PAC supporting Kathryn Garcia
Ronald Olson pleaded guilty to the tax evasion charge last July (iStock)
Former Turner Construction exec sentenced to 4 years in prison
Former Turner Construction exec sentenced to 4 years in prison
Hudson Yards (iStock)
EB-5 program set to expire at the end of June
EB-5 program set to expire at the end of June
arrow_forward_ios

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

Loading...