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WTC steel company CEO arrested on fraud charges

Published on NewsOK Modified: July 31, 2014 at 6:59 pm •  Published: July 31, 2014
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NEW YORK (AP) — The Canadian owner of a company that won nearly $1 billion in contracts to provide steel for the construction of the World Trade Center's tallest building and a transit center was arrested Thursday on charges he defrauded a program meant to benefit minority- and women-owned businesses.

Larry Davis, 63, of Mississauga, Ontario, Canada, was freed on $100,000 bail after surrendering in the afternoon.

Davis, president and chief executive officer of DCM Erectors Inc., was charged with wire fraud and conspiring in a scheme to cheat a program that provided contracts to minority- and women-owned businesses.

His lawyer, Sam Talkin, said in court that his client "wants to fight these charges."

He added: "He is looking forward to his day in court."

Davis agreed to sign waivers of extradition so he can travel between New York and his home in Canada.

Talkin said Davis and his company have known since late 2011 about the investigation.

"Now there's an opportunity to fight back and defend ourselves," he said in an interview.

Assistant U.S. Attorney Carrie H. Cohen told U.S. Magistrate Judge Debra C. Freeman that the government will bring additional charges in an indictment that will accuse Davis of fraud related to other construction projects.

Prosecutors said they have already secured guilty pleas from two individuals who assisted Davis in the fraud.

U.S. Attorney Preet Bharara said Davis secured contracts that came with a responsibility to boost the role of minority- and women-owned businesses.

Instead, the prosecutor said in a release, Davis "committed fraud by claiming that work was going to minority and women-owned businesses when it was not. Davis allegedly tried to cheat the system and deserving businesses out of work."

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