Concrete testing firm president convicted on 1 charge in case involving NYC landmarks

By Jennifer Peltz, AP
Wednesday, February 17, 2010

Concrete test firm president convicted on 1 charge

NEW YORK — The president of a concrete testing company that worked on such New York City landmarks as the new Yankee Stadium was convicted Wednesday of concocting phony test results, but a jury acquitted a low-level manager and has yet to reach a verdict on the top racketeering charge against the president and company.

Deliberations continued Wednesday on enterprise corruption — the state’s version of racketeering — and other charges against Testwell Laboratories Inc., President V. Reddy Kancharla and Vice President Vincent Barone. They are accused of doctoring concrete and steel test results for more than 100 projects, including subway tunnels and ground zero’s signature tower.

Kancharla looked downward but showed little emotion as he heard the partial verdict, which came in the fifth day of deliberations.

He and the company were found guilty of falsifying business records and offering a false instrument for filing, charges that could send him to prison for up to four years. But unlike enterprise corruption, they don’t require prison time. Jurors haven’t decided on any counts against Barone.

The manager, Wilfred Sanchez, left a Manhattan court subdued but relieved after the jury cleared him of enterprise corruption and other charges in a case he said had cost him his job and his Bronx home.

“His whole life has been upended because of this prosecution,” defense lawyer Curtis Farber said. He said Sanchez, who had the title of manager but mainly worked as a steel inspector, had nothing to do with the allegedly bogus test results.

“He went to work each day, and for that he got prosecuted,” Farber said.

Prosecutors and lawyers for the other defendants declined to comment.

The case involved 119 projects in and around the city, including schools, hospitals, hotels, museums and libraries.

City Buildings Department officials say the tower, the stadium and more than 20 other projects have been retested and pronounced safe. But officials are awaiting results for at least 60 more.

Prosecutors said Testwell systematically altered — or simply invented — results for tests designed to ensure that buildings will hold up.

Defense lawyers said the company and executives didn’t intend to defraud anyone. They said the allegations reflected contract disputes, honest errors and common industry practices — not crimes.

Two Testwell engineers, Edward Porter and Michael Sterlacci, have pleaded guilty to conspiracy, acknowledging they knew that Testwell data on concrete formulas, or “mix designs,” were false. Prosecutors say the company generated mix designs from a computer program instead of actually mixing the product and testing how it withstood pressure.

Neither Porter nor Sterlacci is expected to get jail time. Porter paid $100,000 as a forfeiture; Sterlacci is expected to pay more than $138,000.

Several other officials and employees are to be tried separately on various charges.

The case is part of a roster of prosecutions that arose from the city’s recent building boom. Prosecutors say it was plagued by shortcuts and corruption in areas from crane safety to a city building inspection staff that included reputed mobsters.

YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :