Federal prosecutors have charged two safety inspectors with wire fraud, alleging they fabricated hundreds of natural gas pipeline test results for a regulated utility company operating in New York City and Westchester County. The indictment was announced by Jay Clayton, U.S. Attorney for the Southern District of New York, and Lucy Lang, New York State Inspector General.
Liam Treibert was arrested in North Carolina and is set to appear in Raleigh federal court. Michael Vasconcellos was arrested in New York and will be presented in White Plains federal court.
“As alleged, Liam Treibert and Michael Vasconcellos violated the trust placed in them to ensure the safety of natural gas pipelines that were being installed throughout New York City and Westchester County,” said U.S. Attorney Jay Clayton. “They lied about having performed hundreds of inspections and then covered up those lies with fraudulent paperwork. Their actions put the lives of New Yorkers at risk. The safety of New Yorkers is of paramount importance to our Office.”
“When deliberate misconduct – as alleged here – puts entire communities at risk, those responsible must face swift and decisive consequences,” said New York State Inspector General Lucy Lang. “Today’s arrests, made in partnership with the Southern District of New York, demonstrate my agency’s unwavering commitment to protecting critical infrastructure and pursuing accountability on behalf of all New Yorkers.”
According to the indictment, between 2016 and 2023 Treibert and Vasconcellos were responsible for inspecting welds on new natural gas pipelines before they went into service—a process intended to prevent leaks or explosions by detecting defects through non-destructive radiographic testing (x-rays). Instead, prosecutors allege that both men engaged in a practice known as “radaring,” where they would radiograph one weld twice but claim each film represented different welds that had not actually been inspected.
This alleged scheme resulted in Utility-1 paying for hundreds of inspections that did not occur across its pipelines installed throughout the Bronx and Westchester County during this period. The utility company relied on these records when putting pipelines into operation.
Both defendants are charged with one count of wire fraud, which carries a maximum sentence of 20 years if convicted; however, sentencing will ultimately be determined by a judge.
Jay Clayton credited investigative work from both the Office of the New York State Inspector General and special agents from his office. The case is being prosecuted by Assistant U.S. Attorneys David A. Markewitz and Jay McMahon from the White Plains Division.
The charges are accusations only; Treibert and Vasconcellos are presumed innocent unless proven guilty.
