Friday, April 27, 2012

Lend Lease To Pay $56 Million In New York Construction Corruption Settlement

Brooklyn’s U.S. Attorney has agreed to defer prosecution of Lend Lease (U.S.) Construction LMB, Inc., [formerly Bovis Lend Lease] based the agreement of the firm and its former top New York City executive James Abadie to pay $56 million in fines and victim compensation for a ten year long overbilling scheme involving timesheet padding and other abuses. Abadie left Lend Lease in 2009 at the start of the federal criminal investigation into overbilling mail fraud.

According to settlement documents, Abadie “explicitly and fraudulently directed his subordinates to carry out the practice of adding unworked hours to labor foremen’s timesheets, knowing that these unworked hours were billed to clients.”  Lend Lease also admits MBE/WBE fraud in that it self-performed work  it claimed was subcontracted to minority or woman owned businesses, particularly in building a Bronx courthouse in 2000. Other projects affected by the overbilling include a Post Office in Brooklyn, Mets’ baseball stadium in Queens, and demolition of a high rise damages in the 9/11 terrorist attacks.

While prosecution of the business entity has been deferred, Abadie faces $250,000 in fines and 20 years in prison in the ongoing criminal prosecution against him. Lend Lease has agreed to hire a full time auditor to vet union labor timesheets in New York City.
blog comments powered by Disqus