Liam Treibert, Wire Fraud, New York 2024

WHITE PLAINS, NY – A scheme to falsify safety inspections of natural gas pipelines installed throughout New York City and Westchester County has landed two men in federal custody, authorities announced today. LIAM TREIBERT and MICHAEL VASCONCELLOS are accused of wire fraud after allegedly fabricating results for hundreds of critical weld inspections, putting New Yorkers at risk of gas leaks and potential explosions.

U.S. Attorney Jay Clayton of the Southern District of New York and New York State Inspector General Lucy Lang jointly unveiled the indictment, detailing a years-long deception. TREIBERT was apprehended in North Carolina and will be extradited for court proceedings in Raleigh. VASCONCELLOS was arrested in New York and will appear in White Plains federal court. “As alleged, Liam Treibert and Michael Vasconcellos violated the trust placed in them to ensure the safety of natural gas pipelines,” Clayton stated. “Their actions put the lives of New Yorkers at risk. The safety of New Yorkers is of paramount importance to our Office.”

The indictment alleges that between 2016 and 2023, TREIBERT and VASCONCELLOS, while employed as safety inspectors for a regulated utility company (“Utility-1”), routinely skipped actual inspections of pipeline welds. These welds, crucial for connecting pipeline segments, require rigorous non-destructive testing to identify defects that could lead to catastrophic failures. Instead of performing the necessary work, the pair allegedly created fraudulent records to bill Utility-1 for inspections that never happened, effectively pocketing money for sham services.

The scheme centered around a practice within the non-destructive testing industry known as “radaring.” According to investigators, TREIBERT and VASCONCELLOS would radiograph the same weld twice – using x-rays – and then falsely report that the second set of films represented an entirely different weld that they hadn’t actually inspected. This allowed them to claim they’d inspected more welds than they had, and Utility-1 paid for inspections that provided no actual safety assurance. Hundreds of welds across pipelines installed in the Bronx and Westchester County were affected by this practice.

“When deliberate misconduct – as alleged here – puts entire communities at risk, those responsible must face swift and decisive consequences,” said Inspector General Lang. “Today’s arrests…demonstrate my agency’s unwavering commitment to protecting critical infrastructure and pursuing accountability on behalf of all New Yorkers.” The potential consequences for TREIBERT and VASCONCELLOS are significant, with wire fraud carrying a maximum sentence of 20 years in prison. The investigation is ongoing, and authorities haven’t ruled out the possibility of further charges or the involvement of others.

Utility-1 has not been named, and officials have declined to comment on whether the company was aware of the fraudulent inspections. A thorough review of all pipelines inspected by TREIBERT and VASCONCELLOS is now underway to determine the extent of the compromised infrastructure and to ensure the safety of residents. Grimy Times will continue to follow this developing story and provide updates as they become available.

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