NY Construction Company Co-Owners Ordered to Forfeit $5 Million
January 30, 2002
Guisseppe Scalamandre and his brother Fortunato Scalamandre, 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 role in a kickback scam. The brothers pleaded guilty on November 14, 2001, for their role in a tax fraud scheme in which 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 for use in paying organized crime to influence unions. The case was investigated by the Long Island Construction Fraud Task Force, which includes OIG special agents.