Con Ed Construction Officials Arrested in Contractor Scheme

Ten current construction supervisors and one retired supervisor at Consolidated Edison, the utility serving Manhattan and its northern suburbs, were arrested on Jan. 14 for soliciting and accepting more than $1 million in kickbacks since 2004 from a construction contractor. Prosecutors declined to identify the contractor because it is cooperating in the probe and will plead guilty, officials said. Work involved in the scheme included cleanup and repair of an underground steam pipe that exploded in Manhattan in July 2007, killing one pedestrian. U.S. Attorney Benton J. Campbell says the firm’s president and co-owner, also not identified, paid bribes in exchange for having the Con Ed officials approve payments for work never performed or allowing unnecessary work. The employees, arraigned on Jan. 14, entered no pleas and posted bail of $100,000 each. If convicted, each faces a maximum sentence of 10 years imprisonment and a $250,000 fine.