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
| May 18, 2011
Lab personnel find comfort in former Winchester gun factory
The former Winchester Repeating Arms Factory in New Haven, Conn., is the new home of PepsiCo’s Biology Innovation Research Laboratory.
| May 18, 2011
Addition provides new school for pre-K and special-needs kids outside Chicago
Perkins+Will, Chicago, designed the Early Learning Center, a $9 million, 37,000-sf addition to Barrington Middle School in Barrington, Ill., to create an easily accessible and safe learning environment for pre-kindergarten and special-needs students.
| May 18, 2011
Raphael Viñoly’s serpentine-shaped building snakes up San Francisco hillside
The hillside location for the Ray and Dagmar Dolby Regeneration Medicine building at the University of California, San Francisco, presented a challenge to the Building Team of Raphael Viñoly, SmithGroup, DPR Construction, and Forell/Elsesser Engineers. The 660-foot-long serpentine-shaped building sits on a structural framework 40 to 70 feet off the ground to accommodate the hillside’s steep 60-degree slope.
| May 18, 2011
New center provides home to medical specialties
Construction has begun on the 150,000-sf Medical Arts Pavilion at the University Medical Center in Princeton, N.J.
| May 18, 2011
Improvements add to Detroit convention center’s appeal
Interior and exterior renovations and updates will make the Detroit Cobo Center more appealing to conventioneers. A new 40,000-sf ballroom will take advantage of the center’s riverfront location, with views of the river and downtown.
| May 18, 2011
One of Delaware’s largest high schools seeks LEED for Schools designation
The $82 million, 280,000-sf Dover (Del.) High School will have capacity for 1,800 students and feature a 900-seat theater, a 2,500-seat gymnasium, and a 5,000-seat football stadium.
| May 18, 2011
Carnegie Hall vaults into the 21st century with a $200 million renovation
Historic Carnegie Hall in New York City is in the midst of a major $200 million renovation that will bring the building up to contemporary standards, increase educational and backstage space, and target LEED Silver.
| May 17, 2011
Sustainability tops the syllabus at net-zero energy school in Texas
Texas-based firm Corgan designed the 152,200-sf Lady Bird Johnson Middle School in Irving, Texas, with the goal of creating the largest net-zero educational facility in the nation, and the first in the state. The facility is expected to use 50% less energy than a standard school.
| May 17, 2011
Gilbane partners with Steel Orca on ultra-green data center
Gilbane, along with Crabtree, Rohrbaugh & Associates, has been selected to partner with Steel Orca to design and build a 300,000-sf data center in Bucks County, Pa., that will be powered entirely through renewable energy sources--gas, solar, fuel cells, wind and geo-thermal. Completion is scheduled for 2013.
