Rawinder Dhillon, $5.4 Million Construction Fraud, New York 2021

Rawinder Dhillon, the owner of a construction company, and his associate Amninder Singh have been charged with participating in a $5.4 million construction fraud scheme in New York.

The charges were announced by Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation.

According to the allegations, Dhillon and Singh, the owners of a construction company based in Staten Island, New York, submitted fraudulent bonds to the New York State Governor's Office of Storm Recovery (GOSR) to obtain payments on false pretenses in connection with construction projects funded by the United States Department of Housing and Urban Development (HUD).

The defendants were arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robert W. Lehrburger.

The charges against Dhillon and Singh include participating in a scheme to submit fraudulent bonds to GOSR in order to obtain payments on false pretenses.

New Yorkers rely on the New York State Governor's Office of Storm Recovery and the construction companies and subcontractors supported by GOSR to rebuild after devastating storms, said U.S. Attorney Damian Williams. Thanks to our partnership with the Federal Bureau of Investigation, Dhillon and Singh will now be brought to justice for their conduct.

The FBI is committed to ensuring that individuals who conspire to commit fraud against the government face the consequences for their schemes, said FBI Assistant Director in Charge Michael J. Driscoll.

According to the allegations, GOSR was established in 2013 to centralize recovery and rebuilding efforts in impacted areas of New York State. GOSR utilizes federal funding to provide aid for housing recovery, small businesses, community reconstruction, and infrastructure.

The Construction Company, owned by Dhillon and Singh, was awarded contracts by GOSR in connection with certain construction projects funded by HUD. For each of the Construction Projects, the Construction Company was required to obtain surety performance bonds and payment bonds.

However, in or about April 2021, the Construction Company emailed to GOSR documents purporting to be the required performance bonds and payment bonds for the Construction Projects.

Following the submission of the purported bonds, GOSR paid the Construction Company more than $5.4 million in connection with the Construction Projects.

The defendants were arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robert W. Lehrburger.

Source: https://www.justice.gov/usao-sdny/pr/construction-company-owners-charged-54-million-fraud-scheme