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Former New York Construction Company Vice President Convicted for Soliciting Kick-Backs from Subcontractor

On September 23, 2010, Joseph Iorio, former Vice President of Construction for Yonkers Contracting Company (Yonkers), was convicted by a federal jury in Brooklyn, New York, on charges of mail and wire fraud.  The charges were based on his role in soliciting kickbacks from a trucking subcontractor on construction projects, including a Federal Highway Administration (FHWA) funded project.

The investigation revealed that between March and October 2008, Mr. Iorio solicited kick-backs from a trucking company subcontractor in connection with at least three New York State Metropolitan Transportation Authority construction projects on which Yonkers was bidding.  One of the projects included the federally funded Atlantic Yards Arena Development in Brooklyn, on which Yonkers was bidding around $346 million.  Mr. Iorio's arrangement with the trucking company owner was for the trucking company owner to build into his price proposals $.25-$.50 a ton in kickbacks payable to Mr. Iorio by checks, made out to JJA Construction, a business entity associated with Mr. Iorio, and to keep their arrangement discrete and hidden from Yonkers.  In exchange, Mr. Iorio would use his influence to ensure the trucking company was chosen for the sub-contract work if Yonkers was awarded the projects.

A future sentencing date will be set by the Court.  This investigation was conducted jointly with Department of Labor Office of Inspector General and the Port Authority of New York and New Jersey, Office of Inspector General.