Structure Tone, a global construction services firm with annual revenues of over $3 billion, will pay a $55 million forfeiture after pleading guilty to felony charges. The lawsuit in the State Supreme Court, in Manhattan, alleged that the New York-based firm had its subcontractors, including electrical, drywall, and plumbing subs, inflate bills for the company's clients. The work in question included jobs for Bank of America, Moody's, Proskauer Rose, Bloomberg, and other customers from 2005 to 2009.
A report in the New York Times indicates that Structure Tone pled guilty to one count of falsifying business records in the first degree, a felony. David Szuchman, the chief of investigations for the district attorney, says Structure Tone became aware of the investigation in 2010 and put new safeguards in place; Szuchman's office continues to monitor the firm's business records and will do so for three years.
When functioning as a CM, Structure Tone asked subs to put unnecessary contingencies in an addendum called "Rider B," which was unknown to Structure Tone's clients. Execs also asked for discounts from subs on lump sum contracts, when the firm was working as a GC.
The company issued a statement as follows:
“The record-keeping issues, which form the basis of this agreement, date back to the period 2005 to 2009, and we have fully cooperated with authorities from the beginning. The financial position of our company — which generates $3 billion annually in revenue — continues to be strong. Long before this process began, we strengthened our compliance protocols to improve transparency.”
Related Stories
| Apr 19, 2013
Must see: Shell of gutted church on stilts, 40 feet off the ground
Construction crews are going to extremes to save the ornate brick façade of the Provo (Utah) Tabernacle temple, which was ravaged by a fire in December 2010.
| Apr 18, 2013
Survey seeks info from managers of high-tech facilities
The International Institute for Sustainable Laboratories (I2SL), and Laney College in Oakland California, a National Science Foundation-funded Building Efficiency for a Sustainable Tomorrow (BEST) Center, are collaborating to identify education and training needs and strategies for high-tech facility operators.
| Apr 18, 2013
SOM, CASE team up to launch crowd-sourced apps library
SOM and CASE have formally launched AEC-APPS, the first crowd-sourced, web-based library for applications used by architects, engineers and construction professionals. This is a one-of-a-kind initiative in the AEC Industry and is a non-profit online community that allows digital tool users and toolmakers to share ideas, tips and resources.
| Apr 17, 2013
Frank Lloyd Wright's Park Avenue showroom demolished
New York loses another architectural gem by Frank Lloyd Wright as new owner razes auto showroom.
| Apr 17, 2013
First look: Renzo Piano's glass-domed motion pictures museum
The Academy of Motion Picture Arts and Sciences last week released preliminary plans for its $300 million Academy of Motion Picture Arts and Sciences museum in Los Angeles, designed by Renzo Piano and local architect Zoltan Pali.
| Apr 16, 2013
Dempsey Construction acquires Legacy Building Services Inc.
Dempsey Construction Inc., San Diego, has acquired Legacy Building Services Inc., a general contractor also from San Diego. The acquisition creates a diversified organization that will serve the commercial development, biotech/laboratory, multifamily, retail, education, historic renovation, theme park and health care sectors.
| Apr 16, 2013
5 projects that profited from insulated metal panels
From an orchid-shaped visitor center to California’s largest public works project, each of these projects benefited from IMP technology.
| Apr 16, 2013
AIA/NCARB survey shows rosier picture for emerging professionals
In 2010, the AIA/NCARB Internship and Career Survey of emerging professionals took a snapshot of young designers during a time ofintense economic contraction, when they were often the first to suffer. But in the two years since, emerging professionals have begun experiencing a rebound.
| Apr 15, 2013
Seattle school certified as world's fourth Living Building
Bertschi School, an independent elementary school in the Capitol Hill neighborhood of Seattle, Wash., is now home to the first Living Building on the West Coast and the world’s fourth fully-certified Living Building.
| Apr 15, 2013
Advanced lighting controls and exterior tactics for better illumination - AIA/CES course
To achieve the goals of sustainability and high performance, stakeholders in new construction and renovation projects must rein in energy consumption, including lighting. This course presents detailed information about lighting control strategies that contribute to energy efficient buildings and occupant well-being, as well as tips for lighting building exteriors effectively and efficiently.