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View Diary: Magic Johnson's Development Co. to be Added to List of Defendants in $21 Million RICO Suit (4 comments)

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    There's a long tradition of racketeering in NYC building trades (perhaps most infamously among concrete contractors).  For background see a 1988 CNN Money report.

    From yasminderden blog

    Racketeering suits filed by employers against unions are commonplace, but ones brought by labor groups against companies are highly unusual, legal experts said. Mr. Kennedy called the case “unprecedented” because of the level of detail on the inner workings of the companies the unions were able to dig up through HRH Construction's bankruptcy.

    “We think that this case is merely the tip of the iceberg,” said Robert Ledwith, business manager of Local 46. “We know this kind of illegal activity is widespread throughout our industry.”

    A short history of the Empire State Building contractor, Starrett and HRH through the mid-1990s.  Went through some ownership/organizational/operating changes in 1997.

    A bit more on the Singer brothers from Business Week

    Hovering in the background of this power struggle is Steven Singer's brother, Gary Singer, who in the mid-1990s spent nearly two years in federal prison for fraud, money laundering, and racketeering as part of a junk-bond insider trading scheme while he was co-chairman and CEO at Cooper Companies, Inc., a healthcare products maker in Pleasanton (Calif.). At the time of the crime, Steven Singer and a third brother, Brad Singer, were also executives at Cooper and were later sued on civil charges related to the trading scheme.
         
    With those late 1990 changes at Starrett/HRH, Brad Singer came on board.  Big problems -- probably not of Singer's doing -- quickly surfaced.  At least one financial stakeholder lost tens of millions of dollars.  

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