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Former construction execs stole $15M through bid-rigging

Former executives of Turner Construction and Bloomberg LP have been charged with bid-rigging and commercial bribery in a scheme that prosecutors say netted $15 million.

Former Turner executives Anthony Guzzone and Michael Campana in addition to former Bloomberg executives, Ronald Olson and Vito Nigro were indicted on Dec. 11 for stealing $15 million from Bloomberg LP through inflated subcontractor bids and fraudulent work orders. Neither Turner Construction nor Bloomberg were named in the suit.

Charges include conspiracy in the fourth degree, grand larceny, money laundering, and commercial bribery.

“New York’s sky-high construction costs are driven not only by market demand, but by pay-to-play industry corruption that makes it impossible for honest companies to compete,” said District Attorney Cyrus Vance in a statement. “This is exactly the type of the case that our Rackets Bureau was created a hundred years ago to bring.”

The charges come as a result of a joint investigation between the District Attorney’s Rackets Bureau and New York State police, and relates to interior work done at 120 Park Avenue and 919 Third Avenue, both Bloomberg offices.

In exchange for inside information on sought-after bids, the indictment alleges, contractors provided cash bribes, vacations and home renovations. Contractors indicted in the case include Litespeed Electric, Cooling Guard Mechanical Corp., and HOK Electric Co.

According to a statement from District Attorney Vance’s office, more than a dozen individuals and corporations have already pleaded guilty and have paid $5.5 million in restitution so far.

A representative for Turner Construction could not be reached as of press time.

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