Co. owner indicted in deadly NYC crane collapse

At their arraignment in state Supreme Court in Manhattan, both men pleaded not guilty to the charges, which also included criminally negligent homicide, assault and reckless endangerment.

Lomma was given a week to pay $100,000 cash bail and was released. Varganyi was released without bail. Their next court appearance was scheduled for April 6.

Both men and their lawyers declined comment.

"What occurred here was an accident — a tragedy and not a crime,” Paul Shechtman, attorney for the companies, said outside court.

The top of the giant crane snapped and crashed onto a Manhattan apartment building in May 2008. It happened a little more than two months after another crane collapsed elsewhere in Manhattan and killed seven people.

District Attorney Cyrus R. Vance Jr. said Monday’s indictments were expected to end his office’s investigations into the crane collapses.

Vance said the company wanted the crane repaired quickly to keep it generating income from construction contractors who rented the equipment.

"Failing to keep the crane operational would have cost the defendants about $50,000 a month in rental fees, a price the defendants must have felt was too much to pay,” he said. "Today, two families are paying a much greater price.”

City buildings officials approved putting the crane back in service with the repaired turntable, but authorities say the company misled inspectors about testing on the part.

Shechtman said Lomma’s companies had bought the replacement part from a "reputable company” in China and had the turntable thoroughly inspected before using it.

As for prosecutors’ allegations that the crane owners misled buildings officials about the part, he said the companies engaged in "no deceit whatsoever towards anyone.”