Larceny Charges Filed in 130 Liberty Project

NEW YORK CITY-Another indictment related to the deconstruction of the former Deutsche Bank building at 130 Liberty St. has been handed down. Manhattan district attorney Robert Morgenthau has charged the former purchasing agent of John Galt Corp., the subcontractor on the project, with grand larceny for allegedly stealing $1.2 million from the Lower Manhattan Development Corp. and Arch Insurance Group, Galt’s bonding company.

Morgenthau’s office alleges Robert Chiarappa, who was responsible for ordering and approving payment on supplies delivered to 130 Liberty, told vendors over a 13-month period in 2006 and 2007 to submit false invoices for goods never delivered to the site. In exchange, he received kickbacks in the form of cash, checks, jewelry, trips, cars and construction supplies and materials for his own personal use, according to a release from the DA.

The release says that suppliers initially submitted the falsified invoices for phantom and short shipments to the LMDC, which owns 130 Liberty. Following the fatal Aug. 18, 2007 fire at the contaminated former Deutsche Bank building, the suppliers filed claims for falsified and legitimate invoices with Arch, which had provided Galt’s payment bond for the project.