Ex-Bloomberg LP executive among those arrested in fraud case
NEW YORK (AP) — A former Bloomberg LP executive is among 14 people charged in a pay-to-play scheme involving construction work at two of the company’s Manhattan offices.
The defendants were paraded into court in handcuffs on Tuesday to enter not guilty pleas. About a dozen state troopers lined the courtroom.
Prosecutors say the defendants took kickbacks from subcontractors and vendors who then inflated their bills by millions of dollars.
A Bloomberg spokesman says the prosecution sends a message that contractors who engage in fraud will be caught.
Authorities say there’s nothing to suggest that founder and chief executive Michael Bloomberg knew what was going on.
The former New York mayor has been taking steps toward a potential 2020 presidential run and recently announced he was switching his registration to the Democratic Party.