Calvosa testifies before House Subcommittee on Homeland Security in July

Ron Calvosa is the director of fraud prevention at the Lower Manhattan Construction Command Center (LMCCC). He assumed his position at the LMCCC in July 2005 and implemented the agency's fraud prevention hotline in December 2005.

This past July, Calvosa went to Washington, D.C., to testify on lessons learned from 9/11 before a House Subcommittee on Homeland Security. His testimony focused on the preventative measures for dealing with fraud in the construction industry and the benefits of using integrity monitors, also known as Independent Private Sector Inspectors General.

Calvosa has more than 25 years of law enforcement experience. Prior to joining the LMCCC, Calvosa was an inspector general with the New York City Department of Investigation. He holds M.A. and B.A. degrees in criminal justice from John Jay College of Criminal Justice.

Lowermanhattan.info recently sat down with Calvosa to talk about the LMCCC Fraud Prevention Program. Here's what we learned.

LowerManhattan.info: What types of activities are considered   fraud?

RC: There are many. Fraud can include everything from corruption -- like bribery and unlawful gratuities -- to violations of different laws -- such as laws intended to ensure the payment of prevailing wages to construction workers. There can also be fraud in programs intended to benefit minority, woman-owned, or disadvantaged businesses.  There are different types of contract fraud, including submission of false documents, false filings, or product substitution.

LM.info: How do you keep an eye on such a large spectrum of fraudulent activity?

RC: My job here is to assist in preventing that activity. I do not go about it alone. I work with the Lower Manhattan Constru

LMCCC fraud prevention campaign poster

LM.info: How often do you meet with the LMCIT team?

RC: We meet once a month as a routine. We have discussions more often as needed, or I'll speak with the individual LMCIT members separately during the one-month period as issues come up.

LM.info: How much fraudulent activity takes place?

RC: The fraud prevention program was not instated in response to a particular event or a particular allegation, but as a preventative measure. Through methods and measures that we've put in place, our role is to prevent fraud from happening. We put measures in place to deter fraud or, if we detect it, to deal with it.  

LM.info: Did you come up with the idea for the fraud prevention hotline?

RC: No, it was actually being developed by LMCIT members when the executive orders were issued by Governor Pataki and Mayor Bloomberg that created the LMCCC.  The executive orders specified that the LMCCC was to establish and maintain the hotline.

LM.info: Prior to working for the LMCCC, you were an inspector general for the New York City Department of Investigation (DOI). How has that background helped you in your current position?

RC: It's helped greatly. I was involved with the LMCIT team prior to coming over here -- I was a member as an inspector general where I was responsible for two agencies in particular that handled construction: the New York City Department of Design and Construction (DDC) and the New York City Department of Transportation (DOT).

Both of those agencies have significant capital construction budgets, so I have experience in conducting investigations involving the construction industry. In addition, I was a member of a Federal Construction Fraud Task Force.

In my current position I use the knowledge that I gained from my years of investigative experience to put a program in place that will prevent fraudulent activities from happening, or if they do occur, to properly detect and address them.

LM.info: Do you still work closely with DOI?

RC: Yes, I still work closely with DOI because it is still represented on the LMCIT. DOI continues to be helpful to me, to the LMCIT, and to the LMCCC. I should also note that the executive orders establishing the Command Center stated specifically that the fraud prevention director would work with DOI.

LM.info: Talk a little about the difference between the fraud prevention hotline and 311. Why should someone call one over the other, and do you direct calls from 311 to the hotline?

RC: We worked with the New York City Department of Information Technology and Telecommunications (DoIIT), which runs the 311 system, when we established the hotline. They were very helpful. We explained our setup here and worked out a protocol for interfacing with their system. Essentially, we provided a list of allegations to be handled by our hotline. If a call comes into 311 and it deals with anything involving construction in Lower Manhattan below Canal Street and one of those specific areas -- or if it mentions the word fraud -- the 311 operator automatically transfers that call right into our hotline. Conversely, our hotline has been provided with information so that if our operators take a call related to city services but not involving fraudulent activity, they will transfer that call to the 311 system.

LM.info: Can construction workers use the hotline?

RC: It's definitely available to a variety of people. Construction workers, in particular, can take advantage of the hotline and should report suspicions of fraudulent activity. But members of the public, residents, business owners and others who may have suspicions of fraudulent activity involving construction should use it too.

A hotline is important in Lower Manhattan in particular because there are so many projects being conducted by different agencies. A person -- perhaps even someone working on a job -- but certainly a person with less direct involvement -- may not be able to discern which agency is responsible for a construction project. It could be sponsored by any one of a variety of agencies.

The benefit of having the Command Center operate the hotline is that it's very specific to Lower Manhattan. Even though many of the agencies have their own hotlines in place to receive complaints, a person wanting to make a complaint may not necessarily know which inspector general's office to call. With the hotline in place, people can call a single number and the complaints come to me for review. Based on my familiarity of what jobs are ongoing and what agency is working on the job, I can then take that information and refer it to the appropriate inspector general's office.

LM.info: Is the hotline anonymous?

RC: Yes. Obviously, confidentiality is very important. It should be understood that even if a person does want to leave a name and contact information, it will be treated confidentially. But we also understand that some people don't want to leave their names, they want to remain anonymous. That is fine -- they can certainly remain anonymous.

To reach the fraud prevention hotline, call 1-877 FRAUDLESS or 1-877-372-8353. Fraud complaints can also be submitted using a form available on the following page on our website: http://www.lowermanhattan.info/global/prevent_fraud/