Long Island Whistleblower’s RICO Suit Alleges Multi-Million Dollar Fraud in Public Contracting

A Long Island construction industry whistleblower has filed a sweeping civil RICO lawsuit in New York State Supreme Court, alleging a web of public contract bribery, bid rigging, ghost payroll schemes, and union wage fraud tied to more than $27 million in awarded school construction projects.

The case, filed by Vincent Bentivegna – former acting president of US Environmental Abatement Corp. (USEA) – names as defendants USEA, its leadership, and its outside counsel at Forchelli Deegan Terrana LLP, along with several associated individuals.

According to the 100+ page complaint, USEA allegedly secured lucrative public contracts from the NYC School Construction Authority through improper payments and favors to former SCA officials. The lawsuit further claims that USEA, working with allied contractors and shell entities, inflated bids, misclassified workers to evade union wage requirements, and kept “ghost employees” on payroll to funnel money away from actual project work.

Bentivegna contends that when he objected to the conduct – which he says violated both state and federal law – he was subjected to retaliation, including removal from his position, reputational attacks, and economic harm.

The filing describes a coordinated scheme involving public contract bribery, in which payments and favors were allegedly exchanged for inside access to school construction contract opportunities; ghost payroll and union fraud, including placing names on payroll without those individuals working on site and misclassifying workers to avoid paying higher wage rates; and bid rigging through the use of shell entities to submit sham bids, ensuring that USEA’s bids prevailed at inflated prices.

While no criminal charges have been filed to date, Bentivegna’s civil action seeks more than $50 million in damages and refers portions of the allegations to federal and state enforcement agencies.

Representatives for USEA have not yet responded publicly to the claims. Both defendants have a history of public contracts and legal representation in the region, and each could face reputational and operational scrutiny as the case proceeds.

If substantiated, the allegations raise broader questions about oversight in public contracting, especially in taxpayer-funded school projects. Bid rigging and ghost payroll not only inflate costs but also erode trust in public institutions meant to serve students and families.

Bentivegna, handling this pro-se (himself as his own attorney) says he is prepared to release supporting documents, payroll records, and communications to back his claims – offering a rare window into an alleged pay-to-play culture in New York’s public works sector.

The case is ongoing, and the defendants are expected to respond in court in the coming weeks.