Crime & Safety

Manhattan DA: Larchmont Man Named in Fraud Indictment

New York area businesses and businessmen were charged with falsifying business records, taking bribes and receiving bribes as part of a 24-count indictment announced this week.

The charges are the result of a three-year investigation into bribery and fraud in New York City’s electrical contracting industry.

“Bribery and fraud in the construction industry remain a concern,” Manhattan District Attorney Cyrus R. Vance, Jr.  said in a press release. “This long-term investigation exposed nearly two dozen industry professionals alleged to have engaged in illegal activity for the purpose of self-enrichment. As a result of kickback schemes like this one, New Yorkers are footing an inflated bill for public construction throughout the five boroughs – in places as varied as the JP Morgan Chase Tower, The New York Police Academy, New York City Center, and JFK Airport.”

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The Manhattan District Attorney’s Office announced that Ira Friedman, a Larchmont resident and vice president of operations for the IG Federal Electrical Supply Corp., and Todd Ehren, a Port Washington, NY resident and the vice president of purchasing for IG Federal, pleaded guilty to falsely claiming more than $1 million their salaries as expenses earlier this month.

Friedman is expected to be sentenced on Jan. 23, 2014, to six months in jail and will be required to forfeit $650,000 and pay about $260,000 in back taxes to the state. Ehren is expected to be sentenced on March 5  to four months in jail and will be required to forfeit $650,000 and pay about $255,000 in back taxes to the state.

Alan Brite, the president of Benfield Data Comm., was indicted on charges of grand larceny in the second degree,a felony; falsifying business records in the first degree, a felony; commercial bribe receiving in the second degree, a misdemeanor; and commercial bribery in the second degree.

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Benfield Data Comm., which is based in the Bronx, is business division of the Benfield Electric Supply Company. According to court documents, Brite paid purchasing agents from two electrical contracting firms to steer business to Benfield.

In exchange, authorities said Brite paid purchasing agents from three electrical contracting firms more than $850,000 between 2008 and 2012. He is also alleged to have negotiated kickbacks with some of the purchasing agents, receiving more than $200,000 during this time period.

In addition, Brite allegedly worked with Donald Russo, who was employed by Unity Electric Company, to increase bids to Unity in order to pay Russo a kickback.

The charges against Brite and Benfield are part of larger investigation in which at least 15 companies and 17 individuals have been charged, nearly $14 million will be forfeited and approximately $500,000 will be paid in restitution.


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