Long Island Contracting Company Owner and Employee Plead Guilty in Construction Fraud Scheme
On October 10, 2023, Frank Lizza, owner and officer of Intercounty Paving Associates, LLC, and Ramon De Los Santos, an Intercounty employee, pleaded guilty in the U.S. District Court for the Eastern District of New York to making false statements to the Federal Aviation Administration (FAA).
Intercounty provided road construction and paving services to commercial and public customers in New York and New Jersey, including an FAA-funded airport construction project. Lizza was also an owner and operator of 4L Equipment Leasing, a non-unionized company that supplied trucks and drivers for Intercounty's contracts. Lizza and De Los Santos also established LR Safety Consultants & Construction Services, LLC (LR Safety), a unionized company. Between approximately June 2014 and September 2018, Lizza, De Los Santos, and others submitted certified payrolls to FAA and the Port Authority of New York and New Jersey intentionally omitting hours worked by drivers for LR Safety. They transferred a portion of the hours worked to 4L to avoid paying required union benefits.
DOT-OIG is conducting this investigation with Internal Revenue Service-Criminal Investigation Division, Department of Labor OIG, and the Port Authority of New York and New Jersey OIG.