Inspector General Lang Announces $1.5 Million Deferred Prosecution Agreement in Construction Fraud Case Involving Public Projects

 $787,500 from Settlement Allocated for New York State

New York State Inspector General Lucy Lang, together with Manhattan District Attorney Alvin Bragg, today announced that Vanguard Construction and Development Co., Inc. (“Vanguard Construction”) has entered into a three-year deferred prosecution agreement requiring the company to forfeit $1.5 million, in connection with a years-long overbilling scheme involving, in part, publicly funded projects.

Vanguard Construction was arraigned in New York County Supreme Court on February 24, 2026, on a Superior Court Information filed by the Manhattan District Attorney’s Office, charging one count of Scheme to Defraud in the First Degree. As alleged, between December 2017 and December 2022, Vanguard Construction overbilled multiple clients – including the State of New York – by submitting falsified subcontractor change orders and inflated payment requests.

The scheme impacted at least four construction projects, including work for York College (City University of New York).

“New York’s public projects depend on integrity at every level.” said Inspector General Lang. “Through falsified billing and inflated costs, Vanguard Construction violated their responsibility to the public and put taxpayer dollars at risk. This resolution makes clear that those who do business with the State must operate with transparency and honesty and that they will be held accountable when they flout New Yorkers’ trust.”

“Vanguard Construction lined its pockets by inflating billing on public construction projects, stealing from the State of New York in the process,” said District Attorney Bragg. “We are laser-focused on rooting out fraud in the construction industry, including the theft of taxpayer dollars. I thank our partners at the Inspector General’s Office for their work on this investigation.”

The deferred prosecution agreement requires Vanguard Construction to forfeit $1,500,000, with $787,500 specifically allocated to the State of New York. This agreement also reflects Vanguard Construction’s acknowledgement of wrongdoing, its cooperation with the investigation, and its commitment to implement enhanced compliance measures, including strengthened internal controls, mandatory ethics training, and ongoing monitoring to ensure compliance with applicable laws and contracting requirements.