CITY CONTRACTOR PLEADS GUILTY TO FILING FALSE RECEIPTS WITH THE CITY

Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest and guilty plea of the owner of a Brooklyn construction company for submitting fake receipts, including invoices for a fictitious company, with the City Administration for Children’s Services (ACS). DOI began its investigation into this matter when ACS reported to DOI discrepancies in the receipts submitted by the company, an ACS contractor. The Office of Manhattan District Attorney Alvin Bragg prosecuted this case. 

Shahidul Islam, 54, of Brooklyn, N.Y., and owner of Brooklyn-based Kaas Construction, surrendered today on 22 counts of Offering a False Instrument for Filing in the First Degree, a class E Felony, and immediately pleaded guilty to Offering a False Instrument for Filing in the Second Degree, a class A misdemeanor. He was sentenced today in Manhattan Criminal Court to a conditional discharge as part of a plea agreement. 

DOI Commissioner Jocelyn E. Strauber said, “Submitting falsified invoices to the City is a crime. Even as ACS questioned this defendant’s receipts, he continued to submit more fraudulent filings to the City. To ensure that contracting officers City-wide are aware of this defendant’s misconduct, DOI has flagged this vendor and his company in PASSPort, the City’s digital procurement platform. I want to thank ACS for reporting this issue to DOI and the Manhattan District Attorney’s Office for prosecuting this matter.” 

According to the complaint and DOI’s investigation, between 2015 and 2017, Kaas Construction, owned and operated by the defendant, contracted with ACS to perform painting, electrical work, and other miscellaneous repairs at ACS-operated early learning and day care centers throughout the City. As part of the multiple contracts with ACS, the defendant was required to submit an itemized list of materials purchased for use in connection with the work performed, as well as supporting documentation, specifically receipts reflecting materials purchased. During the term of the contracts, the defendant received approximately $95,270 from ACS. DOI’s investigation found that, from 2016 and 2017, the defendant submitted falsified invoices for payment to ACS that included receipts from a fictitious business and receipts from two actual businesses that were falsified.