Building a case
12 face raps in bribe scheme at Bloomberg biz
Prosecutors are expected to charge at least a dozen people — including a former top executive from Bloomberg L.P. and three other ex-employees — linked to a lucrative construction bribery scheme.
The busts, following a lengthy investigation by the Manhattan district attorney’s Rackets Bureau, are expected Tuesday morning with arraignments in Manhattan Supreme Court.
Anthony Guzzone, the former head of capital projects for Bloomberg, is expected to be charged. He was fired after evidence of his conduct was uncovered, a source said.
The fraud involves interior construction projects at Bloomberg’s offices on the East Side and the information giant’s business relationship to Turner Construction Co., sources said.
Arrests will include bosses from Turner and its subcontractors, sources said.
Bloomberg L.P., a financial news and media corporation, is owned by former three-term Mayor and possible presidential candidate Michael Bloomberg. Authorities did not find evidence that he knew of the corruption being carried out by some in his ranks, a source familiar with the investigation said.
“We thank the Manhattan district attorney’s office for uncovering this scheme and for their diligent work and partnership on this investigation,” said Bloomberg spokesman Ty Trippet.
“This sends a strong message to contractors in New York who engage in fraud: You will be caught.” Guzzone’s lawyer Alex Spiro said he “has had an unblemished life and a distinguished career.”
“We will fight any allegation against him,” the lawyer added.
There have already been several arrests in connection to the scheme, including that of Javier Paulino, a Bloomberg employee, who was busted in July for grand larceny and bribe receiving, records show.
In his case, a subcontractor working with the DA’s office said Paulino and others “would either overcharge for work actually performed or charge for work that was not performed, thereby stealing over $1 million from Bloomberg L.P.”
The DA’s office declined to comment on the pending arrests.
A Turner attorney said the general contracting giant “has been proactively cooperating with the DA’s efforts, which we applaud, since the start,” and that the company is not being charged with any wrongdoing.
“Turner and its 9,000 honest, hardworking employees live by a strict code of integrity – these rogue former employees betrayed that code, Turner and its employees,” said the attorney, Thomas Curran.
New York State Police also worked on the probe.