On January 9, 2024, the Manhattan District Attorney announced that Lawrence Wreck and his company JM3 Construction LLC pled guilty to a myriad of criminal charges, including fraudulent using minority and women-owned businesses as pass-throughs to get contracts for affordable housing developments. Charges remain against another six individuals and four companies.

According to the Manhattan District Attorney, Wreck and JM3 exploited New York City’s M/WBE program to obtain contracts, even though JM3 was not actually using minority or women-owned firms as subcontracts. Instead, JM3 falsified business records and made false filings with the New York City Department of Housing Preservation and Development and the New York State Department of Homes and Community Renewal to make it look like M/WBE firms were providing goods and services on the projects. In reality, JM3 and non-M/WBE firms were providing those goods and services.

JM3 and Wreck also made cash payments to M/WBEs to get business for JM3 and falsified records that the M/WBEs would provide work for which they were not qualified to perform.