Bovis Lend Lease fined £35m for fraud

Grant Prior 12 years ago
Share

The American subsidiary of Lend Lease has admitted overcharging for public construction work in New York and will pay £35m in fines and compensation.

The firm was known as Bovis Lend Lease at the time of the fraud between 1999 and 2009.

Prosecutors said the company had billed clients for hours never worked on site.

The US Attorney’s Office for the Eastern District of New York said: “Bovis intentionally and fraudulently billed clients, from at least 1999 to 2009, for hours that were not worked by labour foremen.

“Bovis systematically added one to two hours of unworked overtime per day to the timesheets for labour foremen.

“Bovis also systematically completed and submitted timesheets falsely listing unworked hours as worked when labour foremen were absent for sick days, major holidays, and weeks of vacation.

“Bovis fraudulently billed its clients for this unworked time and, on public projects, falsely submitted certified payrolls, defrauding taxpayers.

“Finally, Bovis made extra, undisclosed lump sum and stipend payments to a select group of labour foremen and billed those payments to clients as well.

“The clients were unaware of these practices. Pursuant to the deferred prosecution agreement, Bovis has admitted all of the allegations.”

The fraud operated on some of the city’s biggest building projects including Grand Central Terminal and  and the United States Courthouse in which Bovis was charged.

Lend Lease said it has now revised its billing procedures.

The FBI Assistant Director in Charge stated: “Today’s proceedings mark the culmination of a three-year investigation into a systemic pattern of audacious fraud by one of the world’s largest construction firms.

“The overbilling fraud affected city, state, and federal public building projects.

“If you are a New York City resident, Bovis indirectly swindled you on three different levels. Whether projects are publicly or privately funded, padding contracts and skirting the law are crimes. And we are watching.”

For a full statement on the case by the FBI visit here

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
22 hours ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
2 hours ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
2 hours ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
2 hours ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
17 hours ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
21 hours ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
1 day ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
1 day ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
1 day ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
1 day ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
1 day ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 day ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
2 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
2 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
2 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
2 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
2 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
2 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
3 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
3 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
3 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
3 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
3 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
3 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
3 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
3 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
3 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
3 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
4 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
4 days ago

Contractor services