Construction Company Admits Fraud; Will Pay $20 Million

Home Live Wire Construction Company Admits Fraud; Will Pay $20 Million

The Schiavone Construction Company signed a nonprosecution agreement with the Brooklyn U.S. attorney’s office after admitting to defrauding government programs for the past five years, The New York Times and Associated Press report. The heavy construction company falsely claimed it was using a proper percentage of disadvantaged businesses (minority-owned and women-owned subcontractors) to help complete projects like a water filtration plant in the Bronx, the South Ferry subway station and the rehabilitation of the Times Square subway station. They will pay $20 million for the crimes committed on $691 million in public contracts. Additionally, the company will pay $1.8 million to the transportation authority’s inspector general and $540,000 to New York City’s Department of Investigation for costs attributed to the five-year inspection.

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