For decades, the potential for wrongdoing in the construction industry has required careful vigilance by developers and owners. In schemes too numerous to catalogue, some unscrupulous contractors and labor unions have engaged in labor racketeering activities, materials substitution, improper disposition of hazardous waste, inflated invoicing, big-rigging, no-show jobs, and other types of fraud.
Our professionals identify, deter, and prosecute fraudulent schemes in an industry with innumerable opportunities for fraud, waste, and abuse.
Exiger is dedicated to deterring and investigating fraud, waste, and abuse at construction sites. We achieve this mission by employing a deeply skilled multi-disciplinary team of investigators, construction engineers, forensic accountants, and project managers – all of whom have years of experience detecting and addressing the multitude of fraudulent schemes that can infect construction projects.
When it comes to construction investigations, our vast experience makes all the difference: our in-house management team and our field personnel collectively have spent decades conducting investigations in residential and commercial construction projects for both the public and private sectors. This vast experience includes recognizing, detecting, deterring, and even prosecuting the myriad fraudulent schemes discovered over the years in the construction industry. This deep expertise also allows us to analyze compliance programs and design state of the art controls to block opportunities for fraud and wasteful conduct.
Exiger’s experts include some of the most knowledgeable professionals in the industry, including former federal and state prosecutors, federal agents, and NYPD detectives with deep experience in construction fraud, labor racketeering, public corruption, and organized crime. Our investigators are overseen by a former prosecutor who served as the Director of the New York State Organized Crime Task Force (OCTF) and led numerous investigations into the New York construction industry and labor racketeering. Exiger’s forensic accountants, led by a CPA and former FBI agent with longstanding experience in investigating construction frauds involving organized crime and corrupt union officials, have specialized construction auditing expertise. Many of our investigators are also former law enforcement officers, and our construction engineers have years of experience working as part of integrity monitoring teams on some of the largest construction sites in New York City.
Owners, developers, general contractors and construction managers are frequently faced with fraudulent activity on their job sites. By contacting Exiger at the first hint of a problem, clients can save money, increase productivity, and prevent the reputational damage that comes with construction projects that are publicly associated with integrity problems or fraud. The Exiger team comes together to investigate and successfully root out fraud and corruption at the outset, and thus prevent our clients’ small problems from becoming big ones.
Construction Investigations Case Studies
Union’s Ties to Organized Crime Revealed
Two Managing Directors at Exiger conducted joint investigations into traditional Organized Crime’s extortionate control over two of the most powerful labor unions in New York City, the International Union of Operating Engineers, Locals 14 and 15. These investigations led to two federal RICO indictments, and the ultimate conviction of 50 members and associates of the Genovese and Colombo organized crime families and the head of both unions. Local 14 was required to appoint a federal monitor, while Local 15 proactively appointed an internal monitor.
RICO Indictment of Gambino Organized Crime Family
A Managing Director at Exiger led a 5-year investigation that resulted in the RICO indictment, arrest, and conviction of more than 60 members and associates of the Gambino organized crime family, including the acting boss, underboss, and consigliere. The indictment centered on the family’s control over a segment of New York’s construction industry, and the murders committed in furtherance of that control. Corrupt construction industry and union officials were also charged as part of this massive prosecution.
Multi-Million Labor Racketeering Scheme Investigated
An Exiger Managing Director spearheaded a labor racketeering investigation into widespread no-show jobs in the New York City construction industry, including a $10 million scheme at the MTA’s then-new headquarters at 2 Broadway in lower Manhattan. The investigation resulted in the convictions of more than 40 defendants, including the developer of the MTA’s headquarters, Business Agents and members of Local 1 of the International Union of Elevator Constructors and Local 14 of the International Union of Operating Engineers, and members and associates of the Gambino and Genovese crime families. Local 1 was required to appoint a federal monitor.