X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Another indictment related to the deconstruction of the former Deutsche Bank building at 130 Liberty St. has been handed down. Manhattan district attorney Robert Morgenthau has charged the former purchasing agent of John Galt Corp., the subcontractor on the project, with grand larceny for allegedly stealing $1.2 million from the Lower Manhattan Development Corp. and Arch Insurance Group, Galt’s bonding company.

Morgenthau’s office alleges Robert Chiarappa, who was responsible for ordering and approving payment on supplies delivered to 130 Liberty, told vendors over a 13-month period in 2006 and 2007 to submit false invoices for goods never delivered to the site. In exchange, he received kickbacks in the form of cash, checks, jewelry, trips, cars and construction supplies and materials for his own personal use, according to a release from the DA.

The release says that suppliers initially submitted the falsified invoices for phantom and short shipments to the LMDC, which owns 130 Liberty. Following the fatal Aug. 18, 2007 fire at the contaminated former Deutsche Bank building, the suppliers filed claims for falsified and legitimate invoices with Arch, which had provided Galt’s payment bond for the project.

Additionally, Chiarappa allegedly took construction supplies and materials, including Carhartt clothing and Timberland boots, for his own personal use directly from a supplier. He then instructed the supplier to submit fake invoices for other materials typically delivered to the Deutsche Bank site in the same amounts as the products that he actually took for himself, according to Morgenthau’s office.

Chiarappa is charged with four counts of second-degree grand larceny, which is punishable by up to 15 years in prison; and two counts of third-degree grand larceny, punishable by up to seven years in prison. In the release, Morgenthau says the investigation is continuing.

Tuesday’s indictment follows last month’s charges against Galt and three construction supervisors stemming from the August ’07 blaze at 130 Liberty, in which two New York City firefighters were killed and more than 100 injured. The DA’s office did not respond to GlobeSt.com inquiries by deadline. Chiarappa’s attorney had no comment.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.