Bloomberg executives defrauded the mega media company by rigging bids and taking kickbacks from contractors, according to reports and court records.
The Manhattan District Attorney’s office and NYPD cops raided the company’s Lexington Ave. headquarters in October seizing documents from two high-level bosses, according to The New York Times.
According to the report, the ongoing investigation centers on a Bloomberg construction manager who inflated costs for projects then awarded the work to contractors who agreed to kickback the excess amount.
The news and financial service’s spokesman, Ty Trippet, confirmed the DA’s probe.
“We are grateful that the appropriate law enforcement authorities brought this to our attention,” Trippet said, “and we have worked closely with them on the investigation.”
General contractor Turner Construction, which subcontracted to the alleged fraudster, was also raided by investigators seizing records.
A lawyer for Turner confirmed that Turner’s internal fraud prevention measures were subverted.
There was “a systemic effort to escape detection by avoiding Turner’s compliance program,” Thomas Curran, the construction company’s lawyer said.
At least eight people were fired because of the investigation, but no criminal charges have been filed, The Times reported.
Last year, Long Island subcontractor Nastasi & Associates sued Bloomberg for $15 million claiming a similar scheme.