Buffalo, N.Y., contractor exec pleads guilty to fraud for bid rigging on $750 million contract

Kevin Schuler, a former executive with Buffalo, N.Y. general contractor LPCiminelli, pleaded guilty to fraud and conspiracy for his part in an alleged bid-rigging scheme.

The scheme reportedly helped his former employer win a $750 million contract related to the Buffalo Billion development program. Prosecutors claim that Schuler and two other LPCiminelli executives, Louis Ciminelli and Michael Laipple, and other individuals related to Gov. Andrew Cuomo's economic initiative, rigged the bid process in favor of LPCiminelli and other contractors.

The executives allegedly made bribes paid to former Cuomo aide Todd Howe and one other individual. Former U.S. Attorney Preet Bharara alleged that LPCiminelli received the multimillion-dollar SolarCity construction contract in return for bribes that were disguised as consultant fees to Howe, who had influence over contract awards.

The fallout from the criminal charges has reportedly cost LPCiminelli $4 billion in contracts from other customers. As a result, the company has stopped functioning as a general contractor and has refocused on program management and development.

New York City has two very large buildings dedicated to answering the 911 calls of its five boroughs. With more than 11 million emergency calls annually, it makes perfect sense. The second of these buildings, the Public Safety Answering Center II (PSAC II) is located on a nine-acre parcel of land in the Bronx. It’s an imposing 450,000 square-foot structure—a 240-foot-wide by 240-foot-tall cube. The gleaming aluminum cube risesthe equivalent of 24 stories from behind a grassy berm, projecting the unlikely impression that it might actually be floating. Like most visually striking structures, the building has drawn as much scorn as it has admiration.