New Fraud Hotline for Lower Manhattan Projects

The Lower Manhattan Construction Command Center launched a fraud prevention hotline. Also, federal prosecutors moved against six current or former New York City School Construction Authority employees.

Bribe Complaints Against Six

Six employees of the New York City School Construction Authority face bribery accusations following a joint investigation by federal, state, and city agencies.

Unsealed in late fall in Manhattan, the four federal complaints and one indictment charged three SCA employees and three former employees with soliciting and accepting bribes between August 2000 and October 2004. If convicted, the six could face up to 10 years in jail and up to $250,000 in fines each.

The complaints alleged that the subjects accepted cash and equipment from contractors in return for approving payment requests on SCA projects; instructed contractors to submit false payment requests; solicited SCA contractors to work on personal residences; and released confidential reports in exchange for payment. The Federal Bureau of Investigation led the inquiry, in cooperation with the city's Department of Investigation, the SCA's inspector general, and the state Attorney General's Organized Crime Task Force.

According to the indictment, Neron Holder, a project officer with the SCA at the time of the complaints, and Paul Nair, the former director of the agency's change-order unit, allegedly solicited and accepted around $40,000 for approving payments to a contractor working on a Bronx public school. They also allegedly solicited an SCA contractor to perform work on their personal residences.

The complaint also alleges that Winston Davis, an SCA project officer, instructed a contractor to submit a false request for payment, which Davis allegedly approved in exchange for a portion of the funds. In a different complaint, Melvin Porterfield, a former project officer, was charged with accepting payments in exchange for releasing confidential internal SCA bid estimates.

Another complaint alleges that former project officer Tosif Siddiqi sought electronic equipment in exchange for approving requests for payment from a contractor on a Bronx school project. Finally, James Keller, a project officer, was charged with accepting cash in return for approving payment requests on a project in Sheepshead Bay.

Fraud Hotline for Lower Manhattan

The Lower Manhattan Construction Command Center has launched 877-FRAUDLESS, a toll-free hotline for reporting fraudulent activity at construction sites in Lower Manhattan.

The 24-hour telephone service can process reports of theft, safety hazards, security breaches, alcohol or drug abuse, bribes, kickbacks, and wage violations. Callers to the service can remain anonymous and all calls are kept confidential, according to the center.

SafirRosetti, a New York-based security firm, has subcontracted National Hotline Services of Fredericksburg, Va., to field complaints and transmit them to the command center's fraud prevention director, who will review the complaint and refer it to the center's inspector general and Lower Manhattan Construction Integrity Team or to another agency.

Thruway Authority to Rebid Contract

Following a state court's rejection of a contractor's petition, the New York State Thruway Authority will rebid a $46 million contract for roadwork in Orange County.

A state supreme court ruling in December denied a challenge by Worth Construction of Bethel, Conn., to a determination by the New York State Comptroller's Office that the company was unfit for a Thruway project near Newburgh, N.Y. The project would open a direct link between Interstates 84 and 87 without using local roads.

The comptroller's office argued that Worth was not a responsible vendor because the company's president was under federal investigation in Connecticut and faced indictment for alleged contracting corruption. It also alleged that the firm had a "long history of association with members of organized crime" and had avoided scrutiny of such suspicions by withdrawing from other public project bids.

In a statement, Worth said it "vehemently disagrees" with the comptroller finding.