One year after two firefighters died in a ferocious inferno at the former Deutsche Bank building, a grand jury has been eyeing evidence of racketeering and money laundering against the contractors in charge of the structure, The Post has learned.
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Among the issues being probed is that officials from John Galt Corp., which was subcontracted by Bovis Lend Lease to raze the tower, laundered millions of dollars through various shell companies, sources said yesterday.
Another is whether Galt the inspectors it hired ignored safety guidelines in dismantling the toxic building, including the removal of a standpipe necessary for getting water to the hoses.
The floors and stairwells were also littered with debris that created a maze-like hazard for firefighters.
The Aug. 18, 2007, blaze was sparked by workers smoking on the site and compounded by a confusing maze of environmentally sealed barriers along with the dismantled standpipe that left the firefighters without any water.
Also facing heat is the Lower Manhattan Development Corp. over its management – or mismanagement – of the job.
A key question is why Galt was allowed on the job despite the fact it lacked experience in a project as big as the Deutsche Bank demolition and deconstruction and may have had mob ties.
Also on the firing lines are officials with FDNY and the Buildings Department over whether they conducted proper inspections of the building at 130 Liberty St. at Ground Zero.
The grand jury is on hiatus until after Labor Day. A spokeswoman for Manhattan DA Robert Morgenthau said yesterday that the investigation is continuing and a decision is expected “in the next few months.”
When asked about the grand-jury probe, Galt executive Don Adler, a vice president at Safeway Environmental Corp., which handled the demolition work, said: “I don’t know anything about that. I can’t help you.” Attempts to reach other Galt officials were unsuccessful.
The developments come as the grief-stricken families of the two dead firefighters demand accountability for the tragic events.
“It’s still a raw nerve,” said Joseph Graffagnino Sr., whose son, Joseph Jr., 33, died on the 14th floor alongside Bobby Beddia, 53. “I still have no answers.”
Graffagnino has turned his grief into action, pushing for better safety standards, and has successfully urged the FDNY to begin testing radio-frequency identity transmitters so downed firefighters can be found.
“Something good has got to come of this,” he said.
Both families’ multimillion-dollar wrongful-death lawsuits against the city and contractors are on hold as Morgenthau wraps up his probe.
“We’re going to find out who is responsible. They’re all supposed to be inspecting, and they failed to do so,” Morgenthau told The Post earlier this week.
The grand jury had been meeting since November and reviewed some 3 million pages of documents Morgenthau’s office seized since the fire.
“They had 40 feet of standpipe missing for a year, and nobody knows it’s missing or they do know and they don’t care,” Morgenthau said.
Additional reporting by Tom Topousis andKati Cornell