The U.S. Attorney’s Office in Brooklyn on Thursday filed fraud charges against Tishman Construction Corp.

The charges were for mail and wire fraud conspiracy for improperly billing clients more than $5 million over a 10-year period for hours not worked and at rates in excess of the agreed-upon contract rate.

The U.S. Attorney’s Office said Tishman entered into a deferred prosecution agreement with the office whereby it admitted to fraudulently overbilling clients and agreed to pay more than $20 million in restitution to victims and penalties to the U.S. government. Tishman also agreed to institute “far-reaching corporate reforms” to eliminate future problems and enforce best industry practices, the U.S. Attorney’s Office said.

Projects that were impacted by the overbilling scheme include the World Trade Center Towers One, Three, Four and Seven, the World Trade Center PATH Transportation Hub, the Plaza Hotel renovation, the Jacob K. Javits Convention Center Expansion and Renovation project, and the Aqueduct Casino in Queens.

Tishman acts primarily as construction manager on its construction projects. Projects from 1999 through October 2009 were impacted by the fraudulent overbilling.

The U.S. Attorney’s Office said the deferred prosecution agreement requires Tishman to pay nearly $5.7 million in restitution and a penalty of nearly $14.6 million in penalties to the federal government over a two-year period.

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