Mob link eyed in bank demolition
The top two execs overseeing the demolition of the Deutsche Bank building at Ground Zero recently ran a firm under investigation for reputed mob links and allegedly dangerous work conditions, the Daily News has learned.
Until February, the two businessmen running the complex razing of 130 Liberty St. were operating Safeway Environmental Corp. - a Bronx firm under scrutiny by city investigators.
One of Safeway's owners, Stephen Chasin, confirmed in an interview with The News that his partner is Harold Greenberg, a two-time felon identified by the FBI as a Gambino associate.
Safeway also has been cited by the city and feds for alleged safety violations during the demolition of an upper West Side supermarket that collapsed in July, injuring several passersby, including an infant in a stroller.
The Occupational Safety and Health Administration hit Safeway with $15,000 in fines after finding five safety violations termed "serious," records show. Safeway is contesting the fines.
But two of its former honchos are now working for John Galt Co., the firm hired by the Lower Manhattan Development Corp. to take down the Deutsche Bank building at Ground Zero. With no experience demolishing skyscrapers, Galt recruited Safeway President Mitch Alvo and Vice President Don Adler to oversee the massive project.
The LMDC has banned Chasin and Greenberg from being involved in the demolition - but the agency has not objected to Alvo and Adler being on site. The agency also is allowing the Galt firm to lease much of its equipment from Safeway, according to Chasin.
The 40-story bank tower is filled with toxic dust that was thrown into the air by the collapsing WorldTradeCenter. Its neighbors long have been concerned that the dust will be released into the air again when workers begin to demolish the tower, where hundreds of bone fragments from 9/11 victims were found just last week.
The involvement of the controversial firm in the razing of the building has further upset area residents and comes as federal environmental officials told the LMDC that the demolition can't go on without its approval.
The Environmental Protection Agency has found what it calls unacceptable levels of asbestos, mercury and several other chemicals in the tower. The EPA was upset when they learned significant changes had been quietly made to the demolition plan.
But Chasin scoffed at claims that 130 Liberty is filled with toxic dust.
"It's all hysteria. It's not true," he said. "There's no asbestos in that building."
Two workers were injured recently in falls at the lower Manhattan site, one from Safeway and one from Galt. OSHA officials cited Safeway for the first accident and is still investigating the second fall.
"It's extremely troubling in light of recent events down there," said David Newman of the New York Committee for Occupational Safety & Health, a nonprofit group monitoring the Ground Zero cleanup. "It's unacceptable. The demolition of a highly contaminated building in a highly populated area requires extra scrutiny, not a lowering of standards."
Newman said Galt had been a bridge construction firm with only 20 employees. To complete the bank demolition, it hired 80 more workers, including many ex-Safeway employees.
Meanwhile, the demolition subcontract has increased to $52 million, from $46 million, due to the need for extra insurance, officials said.
The city Department of Investigation is looking into Safeway's links to Greenberg, a reputed gangster who was convicted of bribery and wire fraud in a bid-rigging scheme, according to sources.
The investigation centers on $7.1 million in contracts Safeway recently completed for the Sanitation Department. Investigators want to know if Greenberg secretly benefited from that work, sources said.
A DOI spokeswoman declined comment except to say the probe is ongoing. Safeway also has been barred from bidding on school construction jobs.
The LMDC has required Galt to sign "special conditions," limiting interaction with Safeway. Galt had to agree to make Adler and Alvo available to city investigators and get LMDC approval if Galt leases equipment from Safeway or its affiliates.
Chasin told The News that Greenberg, who sat nearby and answered some questions, is his business partner. Chasin also said he plans to lease to Galt special equipment he bought for the Deutsche Bank job.
"No, they don't want me or [Greenberg] showing up on the job site and running it," Chasin said. "But one can lease or rent equipment, or for that matter, sell equipment. Where's the problem with that?"
Source: Daily News
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