Krahl Construction: Owner Claims Over-Billing Led to Tipping Off the FBI

Posted on June 23, 2010 by Joshua Glazov

Man whispering something into anthor's earThere are new developments in the saga of Krahl Construction.  Recently, one of the owners Krahl provided work to sued what is now Krahl's estate under the company's assignment for the benefit of creditors.  The owner's complaint (PDF) alleges that:

   1. Krahl over-billed the owner by more than $3M to build a data center on the west side of Chicago

   2. Krahl used white out to alter subcontractors' invoices before submitting them to the owner for payment under an AIA A111+ A201 cost-plus with guaranteed maximum price contract

But the most eye-catching allegation: this owner, suspecting that Krahl over-billed them, tipped off law enforcement.  Perhaps that set things in motion for the dramatic search of Krahl's offices, seizure of the company's records, and closure a few days later back in January 2010?

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