North Carolina Construction News staff writer
A Greenville-based contractor has filed a lawsuit against Lenoir County, alleging the county failed to pay $1.3 million owed for renovation work on the county’s administration building.
Berry Building Group was awarded a $4 million contract with Lenoir County in 2023 to renovate the administration building on Queen Street, which opened in 2024.
However, according to the lawsuit, the county received a fraudulent email that appeared to be from Berry Building Group requesting changes to ACH payment information, directing funds to a Miami-based company. John Berry, owner of the local contractor, said in the lawsuit that the $2.4 million in initial payments were properly received, but the remaining $1.3 million has not been paid.
The county issued a statement July 21, confirming the issue was caused by a cybersecurity breach that occurred outside of the County’s systems and that attempts have been made to “reach a fair resolution with the contractor.”
“We acknowledge the ongoing legal dispute concerning the $1.34 million dollar payment intended for a contractor hired by the county,” officials said in the statement. “The county values the relationships we maintain with our vendors and takes seriously our responsibility to act with integrity and accountability.”
The incident involved multiple parties, including a third-party construction administrator, the county stated.
“In light of that, we do not believe it is reasonable, or in the public’s interest, for the County taxpayers to absorb the full financial impact of this situation.”
The county initiated an FBI investigation, which is ongoing and launched a full internal review of cybersecurity infrastructure, which confirmed there were no breaches or vulnerabilities within the systems that led to the fraud.
“We remain committed to resolving this matter in a fair, lawful and transparent manner. At the same time, we cannot overlook the significant lapses in third-party cybersecurity and communication that led to this situation,” officials said. “We continue to urge all parties to work toward a resolution that reflects mutual accountability. “