Six Manhattan construction companies and eight executives have been charged with enterprise corruption in what investigators say was a lucrative scheme to steal construction jobs from women and minority owned businesses in the affordable housing projects sector in New York City and the tri-state area.
A 60-count indictment announced May 2 by Manhattan District Attorney Alvin Bragg involved an enterprise that used a series of shell companies to cover schemes that defrauded a state insurance fund of more than $1.7 million and rigged construction project bids to cover kickbacks.
“The common factor in all of these alleged schemes is greed at all costs,” Bragg said. “When the field is rigged, law abiding companies and legitimate Minority and Women Owned Business Enterprises are cheated out of much-needed contracts. And when executives care more about their bottom line than their employees and the law, hardworking New Yorkers suffer.”
JM3 Construction LLC, its principal Lawrence Wecker, 82, of Manhattan; Michael Speier, 46, of Jackson, N.J.; Joseph Guinta, 57, of Middletown, N.J.; Lisa Rossi, 52, of Eastchester N.Y. and Marcos Pinheiro, 65, of Kearny, N.J. were charged with conspiracy, insurance fraud, grand larceny, money laundering, falsifying business records, commercial bribing, scheme to defraud and offering a false instrument for filing.
Enterprise corruption is a class B felony that can carry a maximum sentence of eight to 25 years in state prison. If convicted, the companies also may be barred from competing for city contracts.
All were arraigned in district court and released on their own recognizance.
Their attorneys did not respond to ENR's request for comment.
JM3 allegedly falsified records to make it look like it used minority and women owned business enterprises to gain million-dollar contracts, Bragg said.
Construction projects on which JM3 is accused of the fraud include the National Urban League in Manhattan; The Fountains and Vital Brookdale, both in Brooklyn; 79 Avenue D in Manhattan; Via Vyse and Story Avenue East, both in the Bronx; and 14 LeCount Place in New Rochelle, N.Y.
JM3 allegedly used a series of shell companies to cash checks and none of that cash was reported to the state's insurance fund.
Lashawn Henry, 60, of Manhattan and her daughter, Brittany Henry, 27, of Yonkers, are charged in a separate indictment that names their company Urban Strategies of New York. LaShawn Henry is accused of fraudulently collecting disability payments while working. Brittany Henry is accused of unemployment insurance fraud.
Another separate indictment charges Adrian Esparragoza, 48, of Staten Island, for his alleged role in helping to award Wecker and Speier with a contract in exchange for a kickback.
JM3 is due back in court Aug. 1.