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

Bloomberg may have been scammed out of $1M

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

From left: Stephen Ross and Jeff Blau of Related and Donovan Richards (Credit: Getty Images)

Stephen Ross, Jeff Blau among donors to Donovan Richards’s Queens BP campaign

Paul Capurso (Credit: Facebook)

NYC carpenters union elects new president following 2 resignations

Boris Santos

A win for real estate: Socialist candidate halts Assembly bid

City Comptroller Scott Stringer (Credit: Getty Images)

City Comptroller Scott Stringer proposes “Tenant Bill of Rights”

Marlene Cintron, the Bronx’s head of economic development (Credit: iStock)

“It didn’t happen:” Bronx leader says Opportunity Zone program failed to deliver

From left: Eric Adams, Shaun Donovan, Scott Stringer and Ruben Diaz Jr. (Credit: Getty Images)

Mayoral race goes from bad to worse for real estate

Senator Todd Kaminsky and RXR Realty's Scott Rechler (Credit: Getty Images)

No backlash for senator who broke ranks on rent vote

DOB Commissioner Melanie La Rocca (inset) (Credit: iStock)

After façade deaths, city considers using drones for building inspections