Bid-Rigging in Brooklyn

BROOKLYN, NY –  Attorney General Eric T. Schneiderman has announced the arrest and indictment contractors for a bid-rigging scheme in Brooklyn. The construction project, a new luxury residential building at 613 Baltic Street.

Christopher Chierchio and Anthony Milohnic colluded to ensure a lack of competition for the plumbing, sprinkler, and HVAC bids.

“We have zero tolerance for crooks who try to game the system to line their pockets,” said Attorney General Schneiderman. “We’ll continue to work with our partners in law enforcement to crack down on bid-rigging, tax fraud, and all other forms of corruption.”

These arrests are the result of an investigation conducted by Attorney General Schneiderman’s Organized Crime Task Force (OCTF), in collaboration with the New York City Police Department and the New York City Department of Investigations. According to the indictments, Christopher Chierchio, 49, of Staten Island, was charged with Restraint of Trade or Competition, in violation of the New York State Donnelly Act, as well as Criminal Tax Fraud. If convicted of both counts, he faces up to 19 years in prison. Chierchio is a reputed “soldier” in the Genovese organized crime family of La Cosa Nostra. Anthony Milohnic, 43, of North Merrick, was also charged with the Donnelly Act violation.

DOI Commissioner Mark Peters said, “Bid-rigging undercuts fairness and equality in the contracting process. DOI will continue to work with our law enforcement partners to expose and stop this type of pernicious corruption.”