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Probe of New York Utility Yields Two More Construction Arrests

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The U.S. Attorney in Brooklyn, N.Y., announced two new arrests related to an ongoing probe of corruption on construction projects of giant New York utility Consolidated Edison. The sting had led to charges filed in January against 10 current and former Con Ed construction officials for receiving $1 million in kickbacks from contractors. Benton J. Campbell said Russell Ball, CEO of Roadway Construction Inc., Brooklyn, was charged on April 16 with paying “tens of thousands of dollars in bribes” to Con Ed officials on water-main and utility-line construction projects between 2002 and 2004. He made the payments in exchange for the cooperation of an unnamed Con Ed supervisor in approving inflated invoices. The supervisor also shared proceeds with other utility managers. Charged on April 15 was Joseph Lioi, a retired chief construction inspector for Con Ed. Authorities allege he solicited and accepted $24,000 in kickbacks from an unnamed contractor on utility projects in 2007. The defendants could not be reached.

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