Contractor for 1 World Trade Center Is Charged with Fraud

Colin Moynihan, New York Times, August 1, 2014

The owner of a construction company hired to do extensive steel work on 1 World Trade Center was charged on Thursday with fraudulently obtaining $76 million by falsely claiming he was in compliance with requirements for hiring minority and female subcontractors.

The owner, Larry Davis, 63, was accused of using bogus work orders and business records to make it seem as if his company, DCM Erectors Inc., was in compliance with hiring requirements of the Port Authority of New York and New Jersey. He was charged with wire fraud and conspiracy to commit wire fraud, each of which carries a maximum penalty of 20 years in prison.

On Thursday evening, a prosecutor for the United States attorney’s office for the Southern District of New York, Carrie H. Cohen, told a judge in United States District Court in Manhattan that the authorities believed Mr. Davis had carried out similar schemes involving other construction projects.

“The government intends to indict the defendant with additional charges,” she told Magistrate Judge Debra Freeman. “The indictment the government would seek would include other frauds on other buildings that are part of public projects.”

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DCM Erectors was awarded two Port Authority contracts totaling about $600 million to do drafting, engineering and structural steel work on the 1,776-foot office tower at 1 World Trade Center, as well as on the PATH transit hub below the tower. Over time, prosecutors said, those contracts swelled to nearly $1 billion.

Prosecutors said Mr. Davis had close ties to two other companies which DCM Erectors hired as subcontractors to satisfy a contract requiring that he make a good-faith effort to ensure 12 percent of the work was done by a minority-owned company and at least 5 percent by a company owned by a woman.

One of the companies, Solera, which was certified in 1999 by the Port Authority as a minority-owned business, created a joint venture two years later with DCM Erectors. According to the criminal complaint, the owner of Solera, Johnny Garcia, told investigators that the joint venture, Solera/DCM, was set up by Mr. Davis “with the express purpose” of permitting DCM Erectors to obtain minority-owned business credit on public construction projects.

From 2009 and 2012, prosecutors said, Mr. Davis caused DCM Erectors to fake payroll records and purchase orders to falsely claim credit for about $70 million of metal decking work and steel procurement that was supposedly done by Solera/DCM, but was in fact performed by a different subcontractor.

A second company, GLS Enterprises Inc, was owned by Gale D’Aloia, who worked for DCM and managed that company’s payroll before and after forming GLS. But Mr. Davis controlled aspects of GLS’s operations, according to the complaint. {snip}

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  • D.B. Cooper

    Good. How about spending that energy trying to get rid of these racist laws instead of turning to crime?

    • Hal K

      It is better to say anti-white rather than “racist.”

    • http://www.amren.com/ Michael Christopher Scott

      I miss Calvin & Hobbes.

  • MekongDelta69

    requirements for hiring minority and female subcontractors

    Just the word ‘requirements,’ dictatorially says it ALL.

    • dukem1

      yup.

    • http://www.amren.com/ Michael Christopher Scott

      Incidents like this one would be totally non-existent if our government was not so pathologically obsessed with race. Does anyone imagine that the Chinese government strong-arms construction companies into hiring specific percentages of Manchus, Uyghurs, Tibetans and Mongols? Of course they don’t; their government’s focus would be on getting the damned building put up on schedule and within budget. Even politically-correct Europe does things better than this: California’s high-speed rail project looks likely to cost $56 million per kilometer, which is about twice what high speed rail costs in the EU.

      The original One WTC building took two years to complete (1968 to 1970). Assuming the new One WTC is completed on time, it will have taken eight years (2006 to 2014). God forbid the damned thing be finished on time; it’s far more important to worry over whether the right people are being paid to pretend to work on it! The Burj Khalifa tower in Dubai, United Arab Emirates is about 1000 feet taller than the Freedom Tower, and took only five years to build. Taipei 101 in Taipei, Taiwan also took only five years. The Petronas Towers in Kuala Lumpur, Malaysia took four years to build. The Willis Tower in Chicago required only three years (1970-1973), but that was when Americans cared more about getting results than spreading make-work faux contracts around to non-white ethnic bloc-voters. It should be noted that also at that time, NASA actually had a manned space program; since then, they have decided that Islam is “mission critical”, but are content to have their people hitch rides to the International Space Station in Russian rockets.

  • Einsatzgrenadier

    If there was no mass third world immigration, there would have been no 9/11. It’s funny how the government must maintain its policy of mass third world immigration no matter what. These people are worse than Christian fundamentalists. Even if an asteroid slammed into the earth’s surface, the elites would still keep their policy of mass third world immigration going. Nothing can ever be allowed to interfere with the achievement of their ultimate goal: white genocide.

    • NoMosqueHere

      The situation is bad; no doubt about it, and I support a complete ban on all turd world immigration to the US. But the term “genocide” should be limited to cases of intentional, unjustified mass murder of a particular group or race of people. Whites can stop tyrd world immigration if they want to; not enough do.

      • Einsatzgrenadier

        No, it’s genocide. The white race is being slowly annihilated and race replaced through a state-sponsored policy of massive third world immigration (demographic genocide) and multiculturalism (cultural genocide). You don’t have to send whites to concentration camps in order to commit genocide against them. Genocide can also mean the destruction of white social and political institutions, as well as economic life, leading to the total annihilation of the white race in both America and western Europe.

        The US is actually ruled by a hostile elite of Jews and white race traitors with obvious liberal totalitarian tendencies. This means that organizing a resistance movement against the murderous agenda of the elites will be incredibly difficult and fraught with danger, just as it was in the Soviet Union. Overthrowing liberal totalitarian rule will require armed revolution, which will be very hard to pull off because whites lack the necessary leadership and resources to organize an effective resistance against the elites. We must also remember that many whites have been indoctrinated into believing in the benefits of massive third world immigration and multicultural diversity. This makes organizing an effective resistance against white genocide even harder than it otherwise would be.

        • Germanicus

          Well, gentlemen, though I am not and I would not–nor do I know anyone who is or would–but I think that it is a good guess that someone is already taking down the names of the globoperps, no?
          What an idea for a novel: a clandestine team of ‘retributors’ that track these $limey guys down around the world. Body guards have their limitations… Surely there are guys (and gals)–at least characters in a writer’s imagination–who would do this for the thrill of the hunt. Yes, a great fictional story board this would make. I might finally go to a movie based on such a plot. One can make movies that put every European White in bad light and encourage resentments and retribution by minorites towards Whites. Why not pick out the real villains for portrayal? Not just the super rich show up in such a story line, either. The “little” housing, contractors and lawn mowing bosses might make interesting appearances as characters in the developing story plot. One could deal with interesting philosophical, political and theological topics throughout the fast action and tension-building scenes. The author might have to set this into a context where social order and law has already broken down. Wickedness is everywhere repaid. Is such a novel okay to write or does one go to prison for inciting “criminal” activity if one actually sold such books?

      • http://tmasierrahills.blogspot.com/ tma_sierrahills

        A majority of Whites have been against mass legal and illegal in-migration for decades, but are never allowed a clear vote on the matter. Demographic genocide of an entire civilization and its people, as is being intentionally carried out all across the West, is the most final and murderous form of genocide.

    • Tarczan

      There is nothing wrong with Christian fundamentalists. They might pray for your soul, but they won’t try to blow you up.

  • Luca

    I saw these things first hand for many years. Governments require minority contract participation where it does not exist. There are minorities who pretend to be in business and simply go to another source for goods and services and pocket the 10% differential they are allowed to be competitive. The minority vendors go right to the very same legitimate vendor that the government could have gone to for 10% less cost.

    Billions of taxpayer dollars down the toilet all the time.

  • Olorin

    I don’t understand. If race and gender are just matters of culture and identification, and not biological, genetic, or material essentials, then how can he be so charged?

    Anybody he hired could “identify” as anything they want. I’ll bet he had some of the 57 current varieties of tranny on the job–and never even knew it!

  • Guest

    And yet, I am still sure that when I looked straight up at 1 World Trade Center as it was being built, there really were Mexican women working on the high steel.

  • http://saboteur365.wordpress.com/ bigone4u

    The government is the declared enemy of white people and entrenpreneurs, who tend to be overwhelmingly white. Government racial preferences invite all manner of fraud, kickbacks, and corruption.
    There were a number of Mexican profs at the University of Texas at San Antonio who formed companies to bid on government jobs. These companies had no expertise in doing much of anything, but a number of profs became millionaires or more likely multimillionaires through this scam. I’m pretty sure that they were fronting for white businessmen since the profs had no money to start companies.

    • Tarczan

      I also saw it firsthand. Black front guys hire white engineers, and since there are quotas, they are guaranteed work. What does the government expect? Legitimate white firms only have a chance when they hire black front guys.

      The contract in question sounds like it was for detailing the structural steel. I never met a black steel detailer in 40 years in the business. It’s very meticulous, detailed work. One error can cost thousands. The stuff has to be perfect or the building just won’t fit together It is very heavy on trigonometry and math.

  • Jo

    Look at it this way. Without minorities working on this project, 1 WTC won’t fall down.

    • IstvanIN

      We would be better off if they did work on it and it did fall down.

      • Jo

        Why do you want it to fall down?

        • IstvanIN

          To show what enforced diversity can achieve.

          • Jo

            Larry Davis would be accused of shoddy workmanship, not minorities. They can do no wrong.

          • LACountyRedneck

            Even then they won’t get the blame. It was the materials, engineer, poor training by Whites, etc.

  • RyanP

    20 years in prison?!? WTH There are some vile dangerous criminals who go to prison for far less than 20 years. I personally think prison should be reserved for people who are a physical danger to society. There are much better ways to punish white collar crime. That being said, I hate that we have created an affirmative action type system that leads to these types of “crimes”.

    • Rhialto

      That’s the persecutions bargaining position, i.e. worst case. If Davis pleads guilty to all charges and shows public contrition, he’ll do less than 2 years in minimum security.

  • paul marchand

    The real story here of course is NOT the “fraud” of the general contractor.
    But rather that Hispanics, women, and blacks get to play by EASY RULES.
    Only the WHITE MAN gets stiffed with the hard rules.

  • LHathaway

    Why are all the racists always ’63 years old’?

    Could it be experience and wisdom? And finally learning to say what is on your mind?

    • LACountyRedneck

      Experience teaches. Nobody’s born a racist. We need to educate our children and grandchildren because they’re the ones that are really gonna’ get it. They won’t be asking me 20-30 years from now why I didn’t do anything.

  • WR_the_realist

    America — where you can be charged with violating a law that requires you to discriminate against your own sex and race.

  • Luca

    Don’t you know? Performance bonds are racist.

  • Bill

    That’s nothing. San Francisco wants 50% minority/women on all their public construction jobs, including S.F. residents, and 51% or more minority/woman owned companies. Of course skilled trades have a hard time finding them.

    • http://www.amren.com/ Michael Christopher Scott

      So why would a white-owned business bid on a San Francisco municipal contact at all? They’d keep the city’s diversity bureaucrats out of their hair, and the SF taxpayers would get shoddy, overpriced work.

      • Bill

        Yeah, but like anything to do with the government, they pay a lot of money. They agree to a ‘PLA’, Project Labor Agreement, that pays ‘prevailing wages’ to the workers, etc. Prevailing wages are about what union wages are, which are really high. I used to work on those jobs, before retirement.
        Anyway, like most other things, if there’s a loophole to be found, the companies find it. Companies I’ve worked for just told us to keep working whenever anybody said anything to us.

  • http://www.amren.com/ Michael Christopher Scott

    I’ve heard of Mexican contractors leaving out 2/3 of the rebar that construction plans said a project was supposed to have, and then using too much sand in the concrete mix. Of course the result is something that starts falling apart right away.

    • Rhialto

      They are using the Hispanic optimization model.

  • Augustus3709

    “Required to hire minorities”. I thought White people were already a minority in NYC. So what’s the problem?

    And lest it go unchecked, “required” by whom? Who is making these openly anti-White laws? How is this even possible?

  • Michigan Patriot

    Why not have the Bantus build their own version of the new World Tower, the African Straw Hut Tower ? I would like to see a 1,700 ‘ tall straw hut. Black power; yeah !

    • http://www.amren.com/ Michael Christopher Scott

      They could slather lots of river mud and animal dung on it for added strength.

  • http://tmasierrahills.blogspot.com/ tma_sierrahills

    Defrauding a fraudulent race spoils system.