Tishman Construction To Pay Fine Of Over $20 Million For Overbilling Clients
NEW YORK (CBSNewYork/AP) -- Tishman Construction, one of the largest construction companies in New York City, has agreed to pay more than $20 million after admitting to over billing clients.
The U.S. Attorney's office in Brooklyn said Thursday that Tishman Construction's payment will include restitution to victims and penalties to the federal government.
The company was charged with mail and wire fraud conspiracy for allegedly improperly billing clients more than $5 million over a period of 10 years for hours not worked, and at higher rates than what had been bargained for by the clients.
According to federal officials, Tishman, one of the largest construction companies in the country was padding the time sheets of its labor foremen and would bill clients for days the workers were out sick or on vacation, 1010 WINS' Al Jones reported.
Authorities said it happened for about 10 years, from 1999 to 2009, on projects that included construction of One World Trade Center, Aqueduct Casino and the expansion of the Javits Convention Center.
"Today's criminal action and resolution is another example of our steadfast efforts in combating and eliminating fraud in New York City's construction industry," Brooklyn U.S. Attorney Robert L. Capers said in a news release.
A spokesman for Tishman said the company recognized deficiencies in their policies, instituted safeguards and cooperated with the probe.
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