An audit that was triggered by three anonymous letters revealed that fake bids were made for construction contracts at the State University of New York Downstate Medical Center, says New York State Comptroller Thomas P. DiNapoli.
According to the audit, Brooklyn-based Eagle Two Construction and its affiliated fake companies were paid $1.2 million by SUNY between January 1996 and October 2010. The affiliated companies, which are all located at the same address, had submitted competing bids in six separate procurements, some of which were forged, according to the findings made by DiNapoli’s auditors and investigators. Eagle Two won $92,090 in contracts. Auditors also found evidence that payments totaling $49,890 were made to Eagle Two and an affiliated company, JIT, in order to avoid change orders to existing contracts, says DiNapoli. He has suggested that the hospital recoup the funds that should have been covered under previous contracts.