DA files indictments in alleged construction fraud scheme

BY MARIO MARROQUIN

Manhattan District Attorney Alvin Bragg last week filed several indictments charging construction companies and individuals in an alleged fraud and corruption scheme in the city and Westchester County.

The indictments allege that a consortium of general contractors, subcontractors and executives defrauded government agencies and, among other things, conspired with enterprises including minorityand women-owned businesses to obtain contracts for government-subsidized affordable housing developments between 2015 and 2021.

According to the statement of facts, the New York County District Attorney’s Office in June 2020 opened an investigation into corruption within the city’s drywall industry that resulted in a grand jury returning an indictment against six companies.

The district attorney’s office alleges New Jersey–based JM3 Construction, its executives and five other companies falsified business records to make it appear as if minority- and women-owned businesses were providing goods and ser vices, resulting in contracts being awarded for projects in Harlem, the East Village, East New York, Brownsville, the West Bronx, the South Bronx and New Rochelle.

The main indictment, filed last week, levels 60 charges against

JM3 Construction and company executives Lawrence Wecker, Michael Speier, Joseph Guinta, Lisa Rossi and Marcos Pinheiro. New Jersey–based JACG Construction and MGS Construction, and New York–based LNR Construction, which worked as subcontractors for JM3, are also named in that indictment.

The 60 charges include enterprise corruption, a scheme to defraud, conspiracy, grand larceny, attempted grand larceny, falsifying business records, insurance fraud and money laundering. The executives could each face up to 25 years in prison.

“These defendants, as charged, enriched themselves at the expense of a program intended to assist minority- and women-owned busi- nesses, by deceiving city and state government entities, part of a series of frauds that shortchanged workers and undermined fair competition,” Jocelyn Strauber, commissioner of the city Department of Investigation, said in a statement.

The DA’s office also filed separate indictments against Urban Strategies of New York, Big Apple Designers and Eco Geek Living for their participation in JM3 Construction’s alleged scheme.

Bragg’s office alleges these companies and several individuals falsified records and committed various types of fraud to help JM3 secure lucrative contracts.

The DA’s office said the parties in the indictments were arraigned Tuesday and are scheduled to appear in court Aug. 1. ■