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New York construction firms accused of safety scam

JENNIFER PELTZ
Associated Press

NEW YORK (AP) — Two construction safety companies dispatched cooks, hairdressers, bellhops and musicians to sign off as licensed safety experts — one of them dead — on inspections at dozens of high-rise sites, authorities said Wednesday.

Flouting a city law that requires a private-sector site safety manager to spend at least two hours a day checking everything from ladders to firefighting pipes, the companies hired unqualified relatives and others, gave them the names of 10 safety managers and had them sign more than 400 daily safety logs at about 40 building sites, Manhattan District Attorney Cyrus R. Vance Jr. and city Department of Investigation Commissioner Mark Peters said.

No one was physically hurt because of the scheme, but proper inspections later found blocked exits, torn safety netting and other potentially perilous lapses at some sites, the authorities said.

Having “unqualified individuals fabricating that they inspected sites” was a disaster waiting to happen, Vance said. The case is prompting tighter oversight of safety managers’ documentation.

Avanti Building Consultants Inc., NYCB Engineering Group, Avanti leaders Richard Marini and Richard Sfraga and NYCB Vice President Kishowar Pervez pleaded not guilty Wednesday to grand larceny and other charges, as did four men accused of signing the logs.

Pervez denies the charges and will fight them in court, said his lawyer, Marc Agnifilo. Lawyers for Avanti and the other executives declined to comment.

Site safety managers are supposed to keep tabs on safety in between visits from city Department of Buildings inspectors, who spot-check their logs. Construction firms and building owners have to hire a safety manager at any exterior work on a building taller than 14 stories. The managers generally must have several years of experience, take courses and pass a city-administered exam, authorities said.

“Site safety managers are an important, crucial part of making sure that large construction sites in the city of New York remain safe,” Peters said.

While site safety managers can make as much as $100 an hour, NYCB and Avanti, also known as Risk Management Agency Inc., sometimes paid their interns and runners $25 an hour to pose on paper as safety managers who were elsewhere, retired or dead, authorities said.

“Please be extra careful looking for DoB,” Marini wrote in a text message to one runner last August, using the acronym for the buildings department, according to a report by Peters’ agency.

The companies’ clients didn’t know they were paying for bogus inspections. One shelled out more than $412,000, Manhattan Assistant District Attorney Diana Florence said.

Authorities said the real safety managers were largely unaware of the scam; none has been charged.

In response to the probe, the Department of Buildings is increasing audits of site safety managers’ work and qualifications, developing an electronic system that will notify site safety managers whenever their names are being used at construction sites and making some documents more fraud-resistant.

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Reach Jennifer Peltz on Twitter @jennpeltz

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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