Cuomo Bridge Subcontractor Settles Fraud Claim: U.S. Attorney

NEW YORK CITY — The U.S. Department of Justice has filed and settled a civil fraud lawsuit against a subcontractor who lied to receive minority- or woman-owned business status during the building of the Mario Cuomo Bridge.

The settlement wraps up an investigation that started six years ago, New York State Inspector General Letizia Tagliafierro announced Wednesday evening. "In 2015 our office learned that this company, benefitting from the essential DBE (disadvantaged business enterprise) program on this massive infrastructure project, was actually using an unqualified business to deliver fuel to the bridge,” she said. “Through our investigative partnership with the USDOT-OIG and the thorough work of the Manhattan U.S. Attorney’s Office, the company is now being held accountable for circumventing the stringent requirements of the DBE program."

U.S. Attorney Audrey Strauss said Wednesday that Naughton Energy Corporation, a Pennsylvania-based fuel distributor, supplied diesel fuel to vehicles and equipment used in connection with the federally funded New NY Bridge Project to replace New York’s Governor Malcolm Wilson Tappan Zee Bridge.

Mariette and Joseph Naughton got the subcontract as a woman or minority-owned business and from 2013 to 2020, they were contracted to deliver diesel fuel to the construction site.

"However, Defendants lacked both a fuel truck with sufficient capacity and employees with the necessary union affiliation to effectively make these deliveries," she said.

Instead, the Naughtons made a secret deal with another company, who sold them their delivery truck for $1, They put an owner of the second company on their payroll. The two companies split the payments for the bridge work, Strauss said.

As part of the settlement, Naughton Energy Corporation will pay the government $692,000 over the next five years.

"The settlement reached today only strengthens our resolve in pursuing those whose spurious actions prevent the legitimate participation of disadvantaged enterprises (DBE) in federally funded transportation projects," said USDOT-OIG Acting Special Agent in Charge Brian C. Gallagher.