NY water plant contractor hit with fraud charges


NEW YORK (AP) — New York prosecutors have announced a $10 million settlement over claims an electrical contracting company lied about its qualifications in order to win more than $200 million in contracts to improve the City's infrastructure.

Prosecutors say Schlesinger-Siemens Electrical, LLC "overstated the participation of minority businesses" in order to evade the City's minority and women-owned contract requirements.

In addition to the settlement, which included a deferred prosecution agreement, authorities said Monday that two former executives of the company were indicted on charges they falsely claimed the firm employed a Master Electrician. Both executives have pleaded not guilty.

The firm is controlled by the German engineering company, Siemens AG.

Prosecutors say the fraud was uncovered during a probe into work performed at the billion dollar Croton water treatment plant in the Bronx.

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