Contractors Found Defrauding on New York D.O.T. Contracts
Federal Prosecutors say a state contractor who was responsible for buying materials for bridge maintenance projects in the Binghamton region is guilty of wire and mail fraud.
Following a seven-day trial, 47 year old Nathaniel Lorenz of Holley, New York was convicted by a federal jury in Syracuse.
The former police officer and sheriff’s deputy submitted fake invoices to the New York State Department of Transportation to conceal his ACME Powerwashing company was not buying the materials needed for projects in Binghamton and Buffalo. Prosecutors say on just three contracts, the DOT paid ACME more than $1.1 million for bridge sealing work and around $759,000 for cleaning and other work. The company, which had been a contractor with NYSDOT since 2010 was not buying the right amounts of sealing chemicals since at least 2012, saving $500,000 .
Sentencing is set for Valentine’s Day in Syracuse for Lorenz. He faces up to 20 years in prison and a maximum $250,000 fine. He may also be ordered to pay restitution to one or more government agency.
In another case, a Plattsburgh contractor is paying $350,000 also over complaints about bridge-sealing projects. The United States Attorney’s Office says Dandrow’s Painting is resolving allegations that it failed to buy and apply sufficient quantities of a penetrating sealing agent under federally-funded contracts for the New York State Department of Transportation.