Investigations

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Former New York Construction Company Vice President Sentenced for Soliciting Kickbacks from Subcontractor

On January 21, 2011, Joseph Iorio, former Vice President of Construction for Yonkers Contracting Company (Yonkers), was sentenced in U.S. District Court Brooklyn, New York, to three months home confinement, five years probation, 500 hours of community service and ordered to pay a $500 special assessment for soliciting kickbacks from a trucking subcontractor on construction projects.  Mr. Iorio was convicted at trial on September 23, 2010.  

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 a Federal Highway Administration funded project, on which Yonkers was bidding around $346 million.  Mr. Iorio's arranged 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. 

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.