{"id":462,"date":"2011-05-15T19:26:38","date_gmt":"2011-05-16T02:26:38","guid":{"rendered":"http:\/\/www.constructonomics.com\/blog\/?p=462"},"modified":"2011-10-15T16:00:25","modified_gmt":"2011-10-15T23:00:25","slug":"interior-contractor-charged-for-fraud-in-new-york","status":"publish","type":"post","link":"https:\/\/constructonomics.com\/blog\/2011\/05\/15\/interior-contractor-charged-for-fraud-in-new-york\/","title":{"rendered":"Interior Contractor Charged For Fraud – In New York?"},"content":{"rendered":"

Believe it or not\u00a0a contractor has been indicted for fraud for stealing over $30 million from clients over ten years.\u00a0 And guess where it happened – that’s right, New York City.\u00a0 \"1f3ef79\"<\/p>\n

The company was Lehr Construction Corp. and they had a nifty little scheme set up with about six subcontractors with whom\u00a0they were “in bed”.\u00a0 It was nifty, until of course, they got caught.\u00a0 \u00a0<\/p>\n

There are really a couple ways to do construction projects.\u00a0 One of which is\u00a0hiring a CM firm\u00a0who “manages” the job but the\u00a0subcontractors bill the client directly and the CM firm is paid a fee separate from the subcontractors.\u00a0 Another method\u00a0is to hire a CM firm as a general contractor who provides one lump sum for the construction work and then pays subcontractors themselves.\u00a0 Lehr Construction used a combination of these two construction methods to rip off about $3o million.\u00a0\u00a0<\/p>\n

And while\u00a0it didn’t take a\u00a0Harvard scholar to figure this out (and these guys certainly were not), it was a little scheme that would probably be hard to track down.\u00a0 It went like this – Lehr would be working as a CM for a fee on a project and they would wisper in the ear of one of the subcontractors to overcharge the owner.\u00a0 Then that same sub would be working on another project in which Lehr was acting as a general contractor and\u00a0the sub\u00a0would effectively give this money back by charging less than the amount originally bid on the job.\u00a0 Brilliant right?\u00a0 Well, until they got caught.\u00a0 But even then is it really that bad?\u00a0<\/p>\n

The article said that a few of these guys could spend 1-3 years in prison.\u00a0 Could is the key word there.\u00a0 So maybe they go to\u00a0jail for a relatively insignificant amount of time, what about the $30 million?\u00a0 How the hell\u00a0do they get that back?\u00a0<\/p>\n

I guarantee these crooks\u00a0still walk with a ton of money – most of which was stashed in retirement accounts or offshore.\u00a0 So who cares is they spend a year two\u00a0in some white collar crime resort.\u00a0<\/p>\n

Is there any way to stop this?<\/p>\n","protected":false},"excerpt":{"rendered":"

Believe it or not\u00a0a contractor has been indicted for fraud for stealing over $30 million from clients over ten years.\u00a0 And guess where it happened – that’s right, New York City.\u00a0 <\/p>\n

The company was Lehr Construction Corp. and they had a nifty little scheme set up with about six subcontractors with whom\u00a0they were “in bed”.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-462","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/posts\/462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/comments?post=462"}],"version-history":[{"count":7,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/posts\/462\/revisions"}],"predecessor-version":[{"id":466,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/posts\/462\/revisions\/466"}],"wp:attachment":[{"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/media?parent=462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/categories?post=462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/constructonomics.com\/blog\/wp-json\/wp\/v2\/tags?post=462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}