Construction company received kickbacks from subcontractors, Manhattan DA alleges

The Builders Group, a Manhattan construction company, has been indicted on charges connected to an alleged scheme to inflate construction costs for interior building projects across the tri-state area, Manhattan District Attorney Cyrus Vance announced today. The group, along with three of its top executives, has been charged with submitting false invoices from subcontractors to developers of various building projects, and collecting the extra money through kickbacks from those subcontractors. Between 2006 and 2009, the Builders Group, acting as construction manager for condo conversions and office renovations, conspired with subcontractors to overcharge clients by an estimated 10 percent for construction materials after negotiating for a lower price, according to the DA's office. The difference, prosecutors allege, was then secretly returned to the Builders Group in the form of credits for past debt or directly. The company, whose repertoire of projects -- according to its Web site -- include a trauma center at St. Vincent's Hospital, a laboratory at St. Ann's School in Brooklyn and boutiques at the Carlyle for London jeweler Asprey, has denied any wrongdoing. TRD