Acting Brooklyn District Attorney Eric Gonzalez, together with New York City Department of Investigation Commissioner Mark G. Peters, today announced the arrest of seven former National Grid employees as well as landlords, property managers and contractors connected with allegedly installing illegal gas meters across Brooklyn for landlords willing to pay $1,3oo to $2,500 per meter.
The alleged mastermind of the scam and leader of the enterprise is identified as Weldon “Al” Findlay, 47, of Snyder Avenue, Brooklyn, who worked for National Grid until 2010. Findlay and six other defendants are charged with enterprise corruption, which carries up to 25 years in prison.
The other 30 defendants charged in connection with the case include landlords, property managers, and contractors who arranged for, installed, or received illegal gas service.
“We simply will not allow the lucrative real estate market in Brooklyn to feed criminal activity and potentially endanger lives. These defendants showed contempt for rules and regulations specifically put into place to protect public safety. And they did this with callous disregard on a regular basis. We will continue to protect Brooklyn residents by pursuing criminal prosecutions of landlords and others who put profits ahead of safeguards,” said Gonzalez.
Gonzalez said that, according to the indictment, the enterprise consisted of the illegal installation of gas meters in exchange for cash at 33 residential properties across Brooklyn, including Williamsburg, Bedford-Stuyvesant, Brooklyn Heights, Bushwick, Crown Heights, Midwood, and Borough Park, in addition to homes in parts of Queens. Findlay is alleged to have formed the enterprise, and to have directed its criminal activities throughout the period covered by the indictment, namely January 12, 2016 to June 30, 2016.
The Department of Buildings and National Grid have inspected every property identified in connection with the investigation, and ensured that there is no risk to public safety.
Under existing protocols, National Grid employees are required to open accounts for new or renewed gas service to check the public Building Information System (BIS) database to confirm that the property had been inspected as required by the City’s Department of Buildings (DOB). A licensed master plumber or DOB inspector must visit the location and conduct appropriate testing to ensure that gas lines have been properly and safely installed. Compliance is indicated by a control number created in the BIS database. A National Grid employee acting properly would check for the BIS number and then include it in the account record before dispatching a technician to install a meter and initiate gas service, said Gonzalez.
According to the investigation, when a landlord with a new or renovated apartment wanted to avoid either the expense of the required tests, or possible delays associated with compliance, the landlord contacted Findlay, who would arrange for illegal service through his criminal enterprise. Landlords could be confident that National Grid employees setting up the account and providing gas service would violate or ignore any rules or regulations that would prevent or delay the supply of gas.
It is alleged, based on physical and electronic surveillance, including court-ordered monitoring of text messages and phone conversations, that an owner or property manager needing a meter would text Findlay (for instance, “need one meter” or “need 3”) and send an address. Findlay would then text back a price, generally around $1,500 per meter. If the owner agreed, Findlay contacted his six co-defendents working at National Grid and set his criminal enterprise in motion.
Some of the defendants were arraigned this morning before Brooklyn Supreme Court Justice Danny Chun on an indictment in which they are variously charged with enterprise corruption, first-degree falsifying business records, second-degree criminal tampering and second-degree commercial bribing. The defendants were arraigned throughout the day on indictments in Brooklyn Supreme Court and others are being arraigned on felony complaints in Brooklyn Criminal Court.
