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NY Contractor Indicted by FHWA for Defrauding Scheme

Wednesday, May 2, 2018

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In a case connected with the reconstruction of the New York City Kosciuszko Bridge, 15 individuals and companies were indicted with charges of corrupting the government, bribery, bribe receiving, offering of false instruments and engaging in a defrauding scheme.

This case also extends to work completed on various NYS Metropolitan Transportation Authority subway system projects funded by the Federal Transit Administration.

The work on the Kosciuszko Bridge itself was funded by the Federal Highway Administration and the New York Department of Transportation.

Indictment Charges

According to the Office of the Inspector General, between 2007 and 2016, Ifeanyi Madu, a former manager at the New York City Department of Environmental Protection, allegedly leaked confidential information about city contracts to certain companies during procurement and bidding; this gave them a more competitive advantage over other bidders. Some of these companies include: HAKS Engineers, Architects, & Land Surveyors, SIMCO Engineering PC and others.

Tdorante10, CC-BY-SA-4.0, via Wikimedia Commons

The new Kosciuszko Bridge, the first major cable-stayed span to open in New York City, consists of two spans, each carrying three lanes of traffic in opposite directions. The bridge is slated for completion in 2020, costing $500 million.

In exchange for this information, Madu was given employment opportunities for relatives, extravagant meals, gifts and hotel stays, among other items. He also attracted $7.5 million in subcontracts to companies owned or operated by his friends or members of his family, including CIMC Associates LLC, JCMS Associates LLC, JCMS Associates of NYC LLC and MCC General Office Services LLC.

Charges also allege that Husam Ahmad, chief executive officer of HAKS, sought to gain control of SIMCO, which was certified to participate in Federal Disadvantaged Business Enterprise and the State Minority/Woman-Owned Business Enterprise. To do this, he allegedly acquired a 45 percent stake in the company but could not cross the 50 percent threshold without compromising the status of the company’s participation in those programs. To circumvent this, Ahmad purportedly suppled funds to former HAKS employee Muhammad Siddiqui. From there, Siddiqui could purchase the remaining stake. As a result, SIMCO obtained over $10 million in public contracts it was not eligible to receive.

Old Kosciuszko Bridge Project

The old Kosciuszko Bridge was brought down in early October, marking the end of a span that soared 125 feet into the air and was completely dismantled in July. The old bridge was only designed to carry 10,000 cars daily, but had to carry 180,000.

The new Kosciuszko Bridge, the first major cable-stayed span to open in New York City, consists of two spans, each carrying three lanes of traffic in opposite directions. With one span open already, the bridge is slated for completion in 2020, costing $500 million.

   

Tagged categories: Bridges; Criminal acts; Fraud; Government; Infrastructure; NA; Program/Project Management; Project Management

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