“An audit that was triggered by three anonymous letters revealed that fake bids were made for construction contracts at the State University of New York Downstate Medical Center, says New York State Comptroller Thomas P. DiNapoli.

According to the audit, Brooklyn-based Eagle Two Construction and its affiliated fake companies were paid $1.2 million by SUNY between January 1996 and October 2010. The affiliated companies, which are all located at the same address, had submitted competing bids in six separate procurements, some of which were forged, according to the findings made by DiNapoli’s auditors and investigators.

“SUNY Downstate Medical Center has worked closely with the office of the state comptroller on its audit of Downstate’s procurement practices and cooperated fully with its review,” said the hospital in a statement. “We will continue to work with [DiNapoli] to ensure compliance with state procurement regulations, monitor purchasing practices, and reinforce internal controls.”

Click here to access the full news article