Program - Office of Inspector General - U.S. Department of ...

This investigation was conducted jointly with theWest Virginia State Police and with substantialassistance from FHWA.September 23, 2010Former New York ConstructionCompany Vice President Convictedfor Soliciting Kickbacks fromSubcontractorJoseph Iorio, former Vice President ofConstruction of Yonkers Contracting Company,was convicted by a Federal jury, Brooklyn, NewYork, on charges of mail and wire fraud. Thecharges were based on his role in solicitingapproximately $194,000 in kickbacks from atrucking subcontractor on construction projects,including an FHWA-funded project.The investigation revealed that between Marchand October 2008, Iorio solicited kickbacks froma trucking company subcontractor in connectionwith at least three New York State MetropolitanTransportation Authority construction projectson which Yonkers was bidding—including theAtlantic Yards Arena Development in Brooklyn,a federally funded project on which Yonkers bidaround $346 million. The arrangement involvedthe trucking company owner building 25 to 50cents a ton into his price proposals, payable inkickbacks to Iorio, who would use his influenceto ensure the trucking company was chosen forthe subcontract work if Yonkers was awarded theprojects. The arrangement was kept discrete andhidden from Yonkers; Isoro was paid by checksmade out to JJA Construction, a business entityassociated with Iorio.A future sentencing date will be set by the Court.This investigation was conducted jointly with theDepartment of Labor OIG and the Port Authorityof New York and New Jersey OIG.Semiannual Report to Congress • 23