SUPREME COURT OF THE STATE OF NEW...

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ---------------------------------------------------------------------x

THE PEOPLE OF THE STATE OF NEW YORK, -against- ALAN FORTICH, BRUCE PUMO, INDICTMENT RICHARD KASPARIAN, MICHAEL RABKIN, SHAMIM AKOND, ALVARO FORTICH JR., AMERICAN STANDARD TESTING AND CONSULTING LABORATORIES, INC., Defendants. ---------------------------------------------------------------------x

THE GRAND JURY OF THE COUNTY OF NEW YORK, by this

indictment, accuses the defendants of committing the crime of ENTERPRISE

CORRUPTION, in violation of Penal Law Section 460.20(1)(a), as follows:

The defendants, in New York County and elsewhere, from on or about

January 1, 1997, through on or about September 30, 2009, having knowledge of the

existence of a criminal enterprise, (the “ENTERPRISE”), intentionally conducted

and participated in the affairs of the ENTERPRISE by participating in a pattern of

criminal activity.

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The Criminal Enterprise

At all times relevant to this indictment:

The ENTERPRISE consisted of the American Standard Testing and

Consulting Laboratories Inc. (“ASTC”), Alan Fortich, Bruce Pumo, Michael Rabkin,

Richard Kasparian, Shamim Akond and Alvaro Fortich, Jr. and others known and

unknown to the Grand Jury, sharing a common purpose of engaging in criminal

conduct, associated in an ascertainable structure distinct from a pattern of criminal

activity, and with a continuity of existence, structure, and criminal purpose beyond

the scope of individual criminal incidents.

Structure of the Criminal Enterprise

ASTC was founded in 1995 by Alan Fortich as an independent full-service

materials testing and inspection company, servicing the construction industry. It

specialized in the testing of concrete and other building materials for private and

public clients. For every project ASTC worked on, its role was to perform tests and

inspections mandated by the New York City Building Code relating to the strength and

quality of the concrete used in those projects. ASTC’s offices in New Hyde Park

included a testing laboratory which was run by several different licensed New York

State Professional Engineers (“PE”s). They included Bruce Pumo and Shamim

Akond who served as ASTC’s lab directors from 1995-2010, and Michael Rabkin and

Richard Kasparian who worked as consulting professional engineers from 2006-2008.

Alvaro Fortich Jr. (Alan Fortich’s brother) was an inspector at ASTC, and the owner

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of a short-lived testing lab called HT Labs, housed at ASTC’s offices The

defendants worked collaboratively to effectuate the common purpose of the

ENTERPRISE.

Purpose of the Criminal Enterprise

The common purpose of the ENTERPRISE was to make money by engaging

in criminal schemes related to the testing of building materials including, the

falsification of concrete mix design test reports, the falsification of concrete cylinder test

results, the manipulation of government set-aside programs to gain work it was

otherwise not entitled to do and the falsification of credentials in order to gain licenses

it was otherwise not entitled to obtain.

Specifically, for at least ten years, the defendants’ role was to perform tests and

inspections mandated by the New York City Building Code relating to the strength and

quality of the concrete used in construction projects. Instead, defendants regularly

skipped vital safety tests and created false reports to create the impression that the tests

were performed. Defendants filed these test reports with professional engineers

throughout New York who relied on the results to assess the quality of building

materials in hundreds of private and public construction projects.

The defendants also consistently lied to the New York City Department of

Buildings to obtain and retain its concrete testing licenses. During the same period,

defendants lied to obtain and retain small business certifications with New York City

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agencies and the Metropolitan Transportation Authority in order to successfully bid on

work the company would otherwise be ineligible to do.

Pattern of Criminal Activity

During the period of this offense, each of the defendants, as specified below,

participated in a pattern of criminal activity with intent to participate in the affairs of

the ENTERPRISE as follows:

DOB LICENSING FRAUD

Pattern Act 1

Defendants Fortich, Pumo and ASTC committed the crime of OFFERING A

FALSE INSTRUMENT FOR FILING IN THE FIRST DEGREE, in violation of

Penal Law Section 175.35, as follows:

Said defendants, on or about September 10, 2003, in New York County and

elsewhere, knowing that a written instrument, to wit, a 2004 Concrete Lab license

application for ASTC, contained a false statement or false information, and with

intent to defraud the state or any political subdivision, public authority or public

benefit corporation of the state, offered and presented it to a public office, public

servant, public authority and public benefit corporation with the knowledge and

belief that it will be filed with, registered and recorded in and otherwise become a

part of the records of such public office, public servant, public authority and public

benefit corporation, to wit, the New York City Department of Buildings.

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Pattern Act 2






Application for ASTC, contained a false statement or false information, and with







Pattern Act 3




Said defendants, on or about August 15, 2005, in New York County and




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Pattern Act 4

Defendants Fortich, Akond and ASTC committed the crime of OFFERING A












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Pattern Act 5

Defendants Fortich, Alvaro Fortich, Rabkin and ASTC committed the crime of

OFFERING A FALSE INSTRUMENT FOR FILING IN THE FIRST DEGREE,

in violation of Penal Law Section 175.35, as follows:

Said defendants, on or about April 3, 2007, in New York County and


Application for HT Laboratories, contained a false statement or false information,

and with intent to defraud the state or any political subdivision, public authority or

public benefit corporation of the state, offered and presented it to a public office,

public servant, public authority and public benefit corporation with the knowledge

and belief that it will be filed with, registered and recorded in and otherwise become

a part of the records of such public office, public servant, public authority and public


Pattern Act 6




Said defendants, on or about March 14, 2008, in New York County and




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Pattern Act 7




Said defendants, on or about November 3, 2006, in New York County and

elsewhere, knowing that a written instrument, to wit, a November 2006 Letter to

DOB regarding HT Laboratories’ testing equipment, contained a false statement or

false information, and with intent to defraud the state or any political subdivision,

public authority or public benefit corporation of the state, offered and presented it to

a public office, public servant, public authority and public benefit corporation with

the knowledge and belief that it will be filed with, registered and recorded in and

otherwise become a part of the records of such public office, public servant, public

authority and public benefit corporation, to wit, the New York City Department of

Buildings.

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Pattern Act 8




Said defendants, on or about January 24, 2007, in New York County and

elsewhere, knowing that a written instrument, to wit, a January 2007 Letter to DOB

regarding HT Laboratories’ testing equipment, contained a false statement or false

information, and with intent to defraud the state or any political subdivision, public

authority or public benefit corporation of the state, offered and presented it to a

public office, public servant, public authority and public benefit corporation with the

knowledge and belief that it will be filed with, registered and recorded in and



Buildings.

MANIPULATION OF GOVERNMENT PROGRAMS

Pattern Act 9

The defendants Fortich and ASTC, committed the crime of SCHEME TO

DEFRAUD IN THE FIRST DEGREE, in violation of Penal Law Section

190.65(1)(b), as follows:

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Said defendants, in New York County and elsewhere, from on or about

January 1, 2002, through on or about June 2, 2008, engaged in a scheme constituting

a systematic course of conduct with intent to defraud more than one person and to

obtain property from more than one person by false and fraudulent pretenses,

representations and promises, and so obtained property with a value in excess of one

thousand dollars from one and more such persons.

Pattern Act 10

Defendants Fortich and ASTC committed the crime of OFFERING A



Said defendants, on or about February 14, 2005, in New York County and

elsewhere, knowing that a written instrument, to wit, a 2005 DBE Net Worth

Statement, contained a false statement or false information, and with intent to

defraud the state or any political subdivision, public authority or public benefit

corporation of the state, offered and presented it to a public office, public servant,

public authority and public benefit corporation with the knowledge and belief that it

will be filed with, registered and recorded in and otherwise become a part of the

records of such public office, public servant, public authority and public benefit

corporation, to wit, the Metropolitan Transportation Authority.

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Pattern Act 11













Pattern Act 12








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Pattern Act 13




Said defendants, on or about June 2, 2008, in New York County and









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MIX DESIGN TEST FALSIFICATIONS

Pattern Act 14

The defendants Fortich, Pumo, Kasparian, Rabkin, Akond and ASTC,

committed the crime of SCHEME TO DEFRAUD IN THE FIRST DEGREE, in

violation of Penal Law Section 190.65(1)(b), as follows:


January 1, 1997 through on or about September 30, 2009, engaged in a scheme

constituting a systematic course of conduct with intent to defraud more than one

person and to obtain property from more than one person by false and fraudulent

pretenses, representations and promises, and so obtained property with a value in

excess of one thousand dollars from one and more such persons.

Pattern Act 15





elsewhere, knowing that a written instrument, to wit a mix design test report for

Avenue U and Neck Road, contained a false statement or false information, and with




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benefit corporation, to wit, the Metropolitan Transportation Authority.

Pattern Act 16





elsewhere, knowing that a written instrument, to wit, a mix design test report for the

Brighton 5 Station A-35870, contained a false statement or false information, and

with intent to defraud the state or any political subdivision, public authority or public






Pattern Act 17

Defendants Fortich, Rabkin and ASTC committed the crime of OFFERING

A FALSE INSTRUMENT FOR FILING IN THE FIRST DEGREE, in violation

of Penal Law Section 175.35, as follows:

15


elsewhere, knowing that a written instrument, to wit, a mix design test report for East

193rd Street Substation, contained a false statement or false information, and with







Pattern Act 18





elsewhere, knowing that a written instrument, to wit, a TR-1 for 332 East 22nd Street,

contained a false statement or false information, and with intent to defraud the state

or any political subdivision, public authority or public benefit corporation of the

state, offered and presented it to a public office, public servant, public authority and

public benefit corporation with the knowledge and belief that it will be filed with,

registered and recorded in and otherwise become a part of the records of such public

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office, public servant, public authority and public benefit corporation, to wit, the

New York City Department of Buildings.

Pattern Act 19





elsewhere, knowing that a written instrument, to wit, a TR-1 for Memorial Sloan

Kettering Cancer Center, 1275 York Avenue, contained a false statement or false







Buildings.

Pattern Act 20

Defendants Fortich, Akond and ASTC committed the crime of FALSIFYING

BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law

Section 175.10, as follows:

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Said defendants, on or about July 7, 2008, in New York County, with intent to

defraud, including the intent to commit another crime and to aid and conceal the

commission thereof, made and caused to be made a false entry in the business

records of an enterprise, to wit, a mix design test report for The Intrepid and filed

with The Hudson River Trust.

Pattern Act 21




Said defendants, on or about December 10, 2007, in New York County, with

intent to defraud, including the intent to commit another crime and to aid and

conceal the commission thereof, made and caused to be made a false entry in the

business records of an enterprise, to wit, a mix design test report for Memorial Sloan

Kettering Cancer Center and filed with Skidmore Owings and Merrill.

Pattern Act 22




Said defendants, on or about October 9, 2007, in New York County, with



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business records of an enterprise, to wit, a mix design test report for Columbia

University NW Science Building, and filed with Arup.

Pattern Act 23




Said defendants, on or about February 19, 2009, in New York County, with



business records of an enterprise, to wit, a mix design test report, for Jacob Javits

Convention Center and filed with Leslie Robertson Associates (“LERA”).

Pattern Act 24

Defendants Fortich, Kasparian and ASTC committed the crime of

FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of


Said defendants, on or about June 25, 2008, in New York County, with intent

to defraud, including the intent to commit another crime and to aid and conceal the




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Pattern Act 25




Said defendants, on or about April 5, 2007, in New York County, with intent



records of an enterprise, to wit, a mix design test report for 510 Madison Avenue and

filed with Gilsanz Murray Steficek.

Pattern Act 26







business records of an enterprise, to wit, a mix design test report for the MTA

Elevator 57th/7th Avenue, and filed with Stantec Consulting aka Vollmer Associates.

20

Pattern Act 27




Said defendants, on or about January 12, 2007, in Queens County and


Control Tower at LaGuardia Airport contained a false statement or false






authority and public benefit corporation, to wit, the Federal Aviation Administration.

Pattern Act 28

Defendants Fortich, Pumo and ASTC committed the crime of FALSIFYING



Said defendants, on or about July 12, 2006, in New York County, with intent



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records of an enterprise, to wit, a mix design test report for CitiGroup Court Square

II, and filed with Stantec Consulting aka Vollmer Associates.

Pattern Act 29




Said defendants, on or about November 8, 2006, in New York County, with



business records of an enterprise, to wit, a mix design test report, for Yankee

Stadium and filed with Thornton Tomasetti.

Pattern Act 30




Said defendants, on or about July 23, 2004, in New York County and


Port Authority Bus Terminal contained a false statement or false information, and




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benefit corporation, to wit, the Port Authority of New York and New Jersey.

Pattern Act 31






Lincoln Tunnel contained a false statement or false information, and with intent to






corporation, to wit, the Port Authority of New York and New Jersey.

Pattern Act 32

Defendants Fortich, Rabkin and ASTC committed the crime of FALSIFYING



23




records of an enterprise, to wit, a mix design test report for the CitiGroup Court

Square II, and filed with Stantec Consulting aka Vollmer Associates.

Pattern Act 33







records of an enterprise, to wit, a mix design test report for the Columbia university

NW Science building, and filed with Arup.

Pattern Act 34




Said defendants, on or about July 27, 2007, in Queens County and elsewhere,

knowing that a written instrument, to wit, a mix design test report for the Control

Tower at LaGuardia Airport contained a false statement or false information, and

24






benefit corporation, to wit, the Federal Aviation Administration.

CYLINDER TEST FALSIFICATIONS

Pattern Act 35

Defendants Fortich, Pumo, Rabkin, Akond, Kasparian and ASTC, committed

the crime of SCHEME TO DEFRAUD IN THE FIRST DEGREE, in violation of

Penal Law Section 190.65(1)(b), as follows:


January 1, 2001, through on or about September 30, 2009, engaged in a scheme





25

Pattern Act 36





elsewhere, knowing that a written instrument, to wit, a concrete cylinder test field

report for 126th Street and Roosevelt Avenue, contained a false statement or false






authority and public benefit corporation, to wit, the Metropolitan Transportation

Authority.

Pattern Act 37







26







Authority.

Pattern Act 38













Authority.

27

Pattern Act 39




Said defendants, on or about July 21, 2008, in Queens County, with intent to



records of an enterprise, to wit, a concrete cylinder test field report number 274, for

the Croton Harmon Station, and filed with Skanska.

Pattern Act 40




Said defendants, on or about July 21, 2008, in Queens County, with intent to



records of an enterprise, to wit, a concrete cylinder test field report number 274A, for

the Croton Harmon Station, and filed with Skanska.

28

Pattern Act 41






report, for the Second Avenue Subway contained a false statement or false







Authority.

Pattern Act 42




Said defendants, on or about October 3, 2006 in New York County, with



29

business records of an enterprise, to wit, a concrete cylinder test field report number

177, for the Fulton Street Station, Dey Street and Broadway, and filed with Skanska.

DOB LICENSING FRAUD

Count 2













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Count 3













Count 4








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Count 5




Said defendants, on or about November 3, 2006, in New York County and

elsewhere, knowing that a written instrument, to wit, a November 2006 Letter to

DOB regarding HT Laboratories’ testing equipment, contained a false statement or

false information, and with intent to defraud the state or any political subdivision,

public authority or public benefit corporation of the state, offered and presented it to

a public office, public servant, public authority and public benefit corporation with

the knowledge and belief that it will be filed with, registered and recorded in and



Buildings.

32

Count 6




Said defendants, on or about January 24, 2007, in New York County and

elsewhere, knowing that a written instrument, to wit, a January 2007 Letter to DOB

regarding HT Laboratories’ testing equipment, contained a false statement or false







Buildings.

MANIPULATION OF GOVERNMENT PROGRAMS

Count 7

The defendants Fortich and ASTC, committed the crime of SCHEME TO

DEFRAUD IN THE FIRST DEGREE, in violation of Penal Law Section

190.65(1)(b), as follows:

33


January 1, 2002 through on or about June 2, 2008, engaged in a scheme constituting a

systematic course of conduct with intent to defraud more than one person and to

obtain property from more than one person by false and fraudulent pretenses,

representations and promises, and so obtained property with a value in excess of one

thousand dollars from one and more such persons.

Count 8













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Count 9













MIX DESIGN TEST FALSIFICATIONS

Count 10

The defendants Fortich, Pumo, Kasparian, Rabkin, Akond and ASTC,

committed the crime of SCHEME TO DEFRAUD IN THE FIRST DEGREE, in

violation of Penal Law Section 190.65(1)(b), as follows:

35


January 1, 199,7 through on or about September 30, 2009, engaged in a scheme





Count 11





elsewhere, knowing that a written instrument, to wit, a mix design test report for

Avenue U and Neck Road, contained a false statement or false information, and with







Count 12

36






Brighton 5 Station A-35870, contained a false statement or false information, and







Count 13





elsewhere, knowing that a written instrument, to wit, a mix design test report for East

193rd Street Substation, contained a false statement or false information, and with



37





Count 14





elsewhere, knowing that a written instrument, to wit, a TR-1 for 332 East 22nd Street,

contained a false statement or false information, and with intent to defraud the state

or any political subdivision, public authority or public benefit corporation of the

state, offered and presented it to a public office, public servant, public authority and

public benefit corporation with the knowledge and belief that it will be filed with,

registered and recorded in and otherwise become a part of the records of such public

office, public servant, public authority and public benefit corporation, to wit, the

New York City Department of Buildings.

Count 15




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elsewhere, knowing that a written instrument, to wit, a TR-1 for Memorial Sloan

Kettering Cancer Center 1275 York Avenue, contained a false statement or false







Buildings.

Count 16









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Count 17




Said defendants, on or about December 10, 2007, in New York County, with



business records of an enterprise, to wit, a mix design test report for Memorial Sloan

Kettering Cancer Center Phase II and filed with Skidmore Owings and Merrill.

Count 18




Said defendants, on or about October 9, 2007, in New York County, with



business records of an enterprise, to wit, a mix design test report for Columbia

University NW Science Building, and filed with Arup.

40

Count 19







business records of an enterprise, to wit a mix design test report for Jacob Javits

Convention Center and filed with Leslie Robertson Associates (LERA).

Count 20









41

Count 21




Said defendants, on or about April 5, 2007, in New York County, with intent



records of an enterprise, to wit a mix design test report for 510 Madison Avenue and

filed with Gilsanz Murray Steficek.

Count 22







business records of an enterprise, to wit, a mix design test report for the MTA

Elevator 57th/7th Avenue, and filed with Stantec Consulting aka Vollmer Associates.

42

Count 23




Said defendants, on or about July 12, 2006, in New York County, with intent



records of an enterprise, to wit, a mix design test report for CitiGroup Court Square

II, and filed with Stantec Consulting aka Vollmer Associates.

Count 24




Said defendants, on or about November 8, 2006, in New York County, with



business records of an enterprise, to wit, a mix design test report for Yankee Stadium

and filed with Thornton Tomasetti.

43

Count 25







records of an enterprise, to wit, a mix design test report for the CitiGroup Court

Square II, and filed with Stantec Consulting aka Vollmer Associates.

Count 26







records of an enterprise, to wit, a mix design test report for the Columbia University

NW Science building, and filed with Arup.

44

CYLINDER TEST FALSIFICATIONS

Count 27

Defendants Fortich, Pumo, Rabkin, Akond, Kasparian and ASTC, committed

the crime of SCHEME TO DEFRAUD IN THE FIRST DEGREE, in violation of

Penal Law Section 190.65(1)(b), as follows:


January 1, 2001, through on or about September 30, 2009, engaged in a scheme





Count 28






report, for the Second Avenue Subway contained a false statement or false



45





Authority.

Count 29




Said defendants, on or about October 3, 2006 in New York County, with



business records of an enterprise, to wit, a concrete cylinder test field report number

177, for the Fulton Street Station, Dey Street and Broadway, and filed with Skanska.

CYRUS R. VANCE DISTRICT ATTORNEY

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