UDECOTT vs. John Calder Hart et al

Construction Breach of Fiduciary Duty, Bid Rigging "Lindquist Goes After Hart" ‘…Bob Lindquist has been given the mandate to investigate if there was bid-rigging, manipulation of the tendering process and kickbacks to public officials in the award of contracts for two specific projects, the Ministry of Legal Affairs Towers and the beleaguered Brian Lara Cricket Academy…’ Background In March 2010 the UFF Commission issued its report into the construction sector and in regard to the Brian Lara matter their focus was on the ‘now’ events in 2006. However, given that the issues involved parties with a history, Lindquist focused on... Read More...

Desalcott, Trinidad

Construction Bid-Rigging, Money Laundering Procurement Process is Drained Dry The Desalination Company of Trinidad and Tobago is the largest operating desalination facility in the western hemisphere that was formed to sell desalinated seawater to a government owned agency from 2000 to 2024 on a build, own and operate basis. The Attorney General retained Lindquist to investigate allegations of bid-rigging in a process that lead to award of the plant construction to Hafeez Karamath Engineering Services Ltd and Ionics, Inc., based in the U.S. in August 1999 at a cost of US$121 million. Lindquist retained Paul Kelly and Tom Daly to... Read More...

Piarco International Airport, Trinidad

Construction Bid-Rigging, Money Laundering A Flight into the Procurement Process In September 2000, the Attorney General of the Republic of Trinidad & Tobago retained Lindquist to conduct an investigation into allegations of corruption and procurement fraud regarding the construction of the country’s Piarco international airport at a cost of some US$110 million. Lindquist called in Hans Marschdorf and Rod Stamler to assist with the mandate. Our interim report was issued within two months on the Friday prior to the country’s general election held in early December 2000. The AG’s political party won the election, but the investigation did not continue.... Read More...

Shanghai Centre, China

Construction Financial Advisor Cost Overruns and Wrongful Termination Shanghai Centre is the first mixed-use project in Shanghai that includes 472 apartments and a 605 room Ritz-Carlton hotel. The dispute resulted in one party seeking recovery of lost fees and an undetermined amount connected to the alleged wrongful termination. Counsel required the assistance of a forensic accountant to critique the other side’s expert report that alleged a $70 million fraud in the overseeing of the renovations and management of the property. Each allegation was investigated and a response prepared to assist counsel with the action. Read “Portman seeks fees from partners... Read More...

Marriott Hotels, Washington, DC

Construction Bankruptcy Fraud Judgment but no money to pay This was a particularly detailed accounting investigation where Counsel was looking to establish evidence of fraud by the contractor who was attempting to avoid a $3 million judgment in a fraudulent conveyance action. Marriott terminated the contractor and filed a lawsuit and soon thereafter the typical reaction occurred: The contractor began to funnel new business to an otherwise dormant sister corporation. These projects had contract values of some $81 million and their transfer ultimately lead to the contractor’s insolvent position. By analyzing the timing of the relevant transactions and comparing those... Read More...

Regina vs. Hershey Rosen

Construction Mortgage Fraud Diversion of loan proceeds This was my first construction fraud case, one in which loan proceeds were applied for improper purposes. I gave evidence for the Crown as its last witness outlining the use of the construction loan proceeds and again was permitted to sit with Crown counsel during the trial, which was conducted by Judge Hugh Locke without a jury. What made this experience unique was the presentation to me of a document by defense counsel, which was later established to be fraudulent -- but at the time it drew my admission that I had not... Read More...

Regina vs. Mel Kurtz

Construction Bribery VP Construction costs $21,500 This case gave me my first experience giving evidence in a bribery trial, which is legally described as “unlawfully accepting a secret commission.” Kurtz was convicted in February 1977 for receiving $21,500 as vice-president of a construction company. At issue in the case was the question of who was really the guilty party, the payor or the payee. From the payor’s perspective, it is essential to examine the family of companies associated with the contracting party when looking for the source of the payment. It will be somewhere, because the payor views the payment... Read More...