One of the biggest construction firms in New York admitted that it overbilled its customers for at least 13 years – and now it’ll fork over $9 million in restitution and fines, authorities announced Thursday.
Plaza Construction, which has worked on projects at the Empire State Building, Federal Reserve Bank and Brooklyn Navy Yard, overbilled its clients by $2.2 million for unworked hours and by tacking a hidden surcharge onto its bills in order to offset administrative costs.
The building giant entered into a deferred prosecution agreement with Brooklyn federal prosecutors.
Prosecutors said from at least 1999 to 2012, Plaza submitted bills to clients with “false statements and material misrepresentations and omissions.”
From 2004 to 2012, it also “systematically” inserted a secret surcharge to its bills and submitted time sheets for construction workers for hours and overtime they did not actually work.
Under the deal with feds, Plaza accepted responsibility and will pay $2.2 million in restitution to clients, a $5.6 million penalty and forfeit another $1.3 million to the government over a two-year period.
The firm also agreed to overhaul its business practices, including establishing annual training on code of business ethics and revising its time-sheet recording and client-billing policies.
In a statement, Plaza said it will “promptly honor our commitment to make restitution to any client impacted by these practices.”
“Plaza has cooperated fully with the government’s inquiries and has previously and willingly corrected our past conduct,” the statement said.