Feds: Con Ed Workers Took $1 Million in Kickbacks

Federal prosecutors say that eleven Con Edison supervisors (ten current and one retired) forced a contractor to give them over a $1 million in bribes so they'd approve payments on projects like clean-up from the 2007 steam pipe explosion near Grand Central Station. And what's more, the feds have wiretaps of them bragging about it. Classy!

Bribes were given in the form of Giants-Cowboys tickets, electronic gadgets and cash. According to the Daily News, "Con Ed construction manager Rocco Fassacesia lamented the difficulty of spending the dirty money on his daughters' college tuition without attracting attention." He was recorded saying, " I used to go up to the bursar's office at, at the campus and come out with their f---ing tuition for the semester in f---ing 100s." And the Post has this quote from Thomas Fetter: "From a couple of a--holes shaking down f---ing contractors, we did pretty f---ing good."

The accused were arrested yesterday, and the NY Times explains they apparently "approved invoices for work that was unnecessary or was never performed, or guaranteed faster payment for work that was performed"—and they'd get about 4% of the payment. U.S. Attorney Benton Campbell said, "These defendants used their positions at Con Ed to line their own pockets at the expense of utility customers and the residents of the New York City metropolitan area."

Assemblyman Michael Gianaris, a Con Ed critic, said he was "disappointed, but hardly surprised... While most Con Edison employees are hardworking, honest individuals, those who are not are thriving in the sprawling, unaccountable monopoly that is Con Edison. This is yet another glaring example of the need to reform this monopoly so that it will finally begin operating like a responsible corporate citizen."

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By Jen Chung in News on January 15, 2009 9:55 AM

Comments [rss]

whitecastlerock

A million bucks? That's ashtray money...

snoopydog

I usually pay my son's yearly tuition in unmarked tens and twenties. That way no one is suspicious.

r1b2

When I hear stories like this, I wonder what goes through the heads of these scumbags when they get busted, and they always get busted eventually. "What was I thinking; did I REALLY expect to get away with this?" Schmucks.

schadenfreudian mensch

True. I mean for a few million dollars EACH, I can see taking the risk, but for a lousy few thousand dollars. People just don't think things through unlike Madoff. Now there's a scam of all scams.

NannyState

I think Bernie Madoff took three years of ConEd in college...

donner

Hey Jen- any updates on the poor guy who was in that truck from the steam pipe explosion?

FrankMartin

what corruption, construction and contractors all together. shocking

Nyctini11

I don't understand how there are not more security measurements involved with these with giant companies to protect all of us from this kind of crap. Didn't the whole Enron scandal and other such similar ones teach them anything, i guess i just don't get how this stuff still goes on... especially considering they just won another 1 year rate increase on our bills for 2009 which will essentially increase our monthly bills by 10%, FOR WHAT??? so we can fund all the scammers of their company?? if there are 11 busted, trust there are more.

Bottomless Chips

Yay! Free Market! Yay!

What's so free about having one choice for utilities. Isn't choice a pillar of free market capitalism?

But, sure, keep blaming evil capitalism if it makes you feel better.

Felix Hoenikker

There is no such thing as free market capitalism...only lobbyist driven govermental/corporate collusion against taxpayers/citizens/sheep.

The current meltdown is a perfect example of combining the worst characteristics of capitalism and socialism.

kane

A true free market system would not have a Fed to regulate it (not defending or supporting free market capitalism, just stating a fact).

JacqueMehoff

what does the mayor say about this?

and OT, there should be FREE INTERNET access for everyone.

Eff this deregulating utility and telecom crap.

Yay! Free Market! Yay!

Bottomless Chips

Let's create more co-op jobs, Obama and Bloomie!

Hope! Change!

Felix Hoenikker

This article f---ing pisses me off.

blackwhole

Yeah, let's give the utilities less oversight and regulation. That's worked so well thus far. Let's do that for the MTA, as well.

GM

So, Assemblyman, are we going to move towards a more national electric grid and remove price controls on electricity and allow competition? Or are we just going to drop more stones into the ocean?