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Office of Inspector General |
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| Title: | NY Construction Firms Debarred in Scalamandre Brothers Contract Fraud Case |
| Date: | June 07, 2002 |
| Type: | Investigation |
| Summary: | The Scalamandre brothers and three construction firms they own—Peter Scalamandre & Sons, Inc., Scalco Construction Corp., and Sea Crest Construction Corp., all of Freeport, NY—were debarred from Federal contracting for 3 years by FHWA in a follow-up to a contract fraud investigation in which OIG special agents played a central role. In January, Guisseppe Scalamandre and his brother Fortunato, co-owners of several major construction companies that performed work for DOT grantees in the New York City area, were ordered by a U.S. District Court judge in Central Islip, NY, to forfeit $5 million for their part in a kickback scam. The brothers pleaded guilty on November 14, 2001, to participating in tax fraud where they issued nearly $1 million in corporate checks to their subcontractors to pay fraudulent invoices generated at the Scalamandres’ direction. The checks were cashed and the funds returned to the Scalamandres who paid organized crime to influence unions. |