Gothamist

A non-profit newsroom, powered by WNYC.

Gothamist

WNYC Listen Live

Donate

 

 

News

Construction Firm Bovis Lend Lease Admits To Massive Fraud


By

Jen Chung

Published Apr 25, 2012

Modified Apr 25, 2012


Share

FacebookTwitterRedditEmail


Never miss a story

 Email address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .

Hello, Citi Field

 

Tien Mao/Gothamist


By

Jen Chung

Published Apr 25, 2012

Modified Apr 25, 2012


Share

FacebookTwitterRedditEmail


We rely on your support to make local news available to all

Make your contribution now and help Gothamist thrive in 2026. Donate today

Gothamist is funded by sponsors and member donations

Bovis Lend Lease, one of the world's largest construction companies, has admitted to fraud and agreed to pay the U.S. government $50 million to settlement the charges yesterday. And how did it perpetrate the fraud? Well, a former Bovis executive, James Abadie, explained it this way in court today, "From at least 1999 to 2009, I agreed with others at Bovis to continue the existing practice for Laborers at Local 79 to add one or two hours to their time sheets every day whether it was worked or not. I and others authorized the practice for labor foremen to take vacation and holidays while filling out their time sheets as though they had worked."

Abadie, called "one of the most prominent construction executives in the city" by the US Attorney's office, pleaded guilty to conspiring to commit mail and wire fraud by fraudulently overbilling Bovis’ clients. The Justice Department worked with the FBI, Manhattan DA's office, Port Authority, NYC government and other agencies in the investigation.

The US Attorney's Office also said, "The company, which changed its name from Bovis Lend Lease to Lend Lease after a fatal fire during its demolition of the Deutsche Bank building, will not be prosecuted criminally as a result of the agreement with federal prosecutors in Brooklyn, who say it is the largest construction fraud settlement ever in New York City.... Abadie and Bovis employed the fraudulent overbilling scheme across the broad spectrum of Bovis’ projects in the New York metropolitan area, including some of the area’s most important, large-scale public and private construction projects. Affected projects included the United States Post Office/Bankruptcy Court in Brooklyn, New York; the Bronx Criminal Courthouse in the Bronx, New York; Grand Central Terminal; the Deutsche Bank building deconstruction in New York, New York; Citifield in Queens, New York; and the very United States Courthouse in which Bovis was charged and Abadie pled guilty this morning." Irony!

Bovis also claimed it had hired minority sub-contractors on public project, but never did: "In reality, Bovis secretly performed the work itself by directly managing the union labor that was supposed to be employed and supervised by HJR and relegated HJR’s role to a mere pass-through, thereby fraudulently enabling Bovis to get false credit for compliance with its MBE obligations and get paid for its work on the project."

US Attorney Loretta Lynch said, "Our investigation of the industry continues, and the resolution we reached today should send a very clear message. Given the public nature of many of these projects, we must ensure that taxpayers get their money’s worth and that the industry complies with the law. The defense of ‘everyone does it’ will not be a shield against law enforcement."

Tagged

bovis lend lease

citifield

construction

construction fraud

lend lease

overbilling

settlement


Jen Chung

Jen Chung is a former WNYC and Gothamist editor.

Read more

Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


MORE news

Bronx couple starved their 3-year-old to death, indictment says

Their son was was also malnourished and hospitalized for a month, according to prosecutors.

By

Catalina Gonella

Published Oct 21, 2026 at 2:10 p.m. ET


Marble Hill protester accused of attacking federal agent faces assault charge

Prosecutors say a Bronx man grabbed and ripped the clothing of a Homeland Security Investigations employee.

By

Samantha Max

News

Marble Hill protester accused of attacking federal agent faces assault charge

Prosecutors say a Bronx man grabbed and ripped the clothing of a Homeland Security Investigations employee.

By

Samantha Max


NYC’s subsidized childcare waitlist is moving, starting with 3K families

By

Karen Yi

Elon Musk drops $500K on NY Rep. Mike Lawler's re-election bid

By

Jon Campbell

Early Addition: If you catch a mouse, there are meaner options than feeding it to a bird

By

James Ramsay


Never miss a story

Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.

Sign upEmail address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .