A McKeesport contractor, two of his employees and the senior project manager of the Pentagon rebuilding project were indicted yesterday in Pittsburgh in connection with a complex scheme to overbill the Department of Defense for labor and materials following the Sept. 11, 2001, terrorist attacks.

Capco Contracting owner Thomas J. Cousar, 52, of Monroeville, and two of his managers, Catherine L. Bradica, 53, of Irwin, and Daniel D. Monte, 60, of Clifton, Va., were charged with inflating labor costs in connection with the building of PNC Park and the Petersen Events Center from 1999 to 2001.

In the Pentagon case, the indictment also named Joseph Arena Jr., 55, of Gaithersburg, Md., project manager for AMEC Construction Management in Bethesda, Md., the prime contractor for the renovation.

The 53-page indictment detailed a litany of padded bills, falsified documents, tax fraud and kickbacks during the three projects that U.S. Attorney Mary Beth Buchanan said amounted to more than $1 million in losses.

The PNC and Peterson frauds cost the general contractors on those projects but not the taxpayers, she said, but the Pentagon fraud clearly came at taxpayer expense.

Mr. Cousar could not be reached yesterday. His lawyer, Frederick Thieman, did not return a call.

At PNC Park and the Petersen center, the indictment said, Mr. Cousar, Ms. Bradica and Mr. Monte padded labor costs from 1999 to 2001 by submitting false time sheets and other documentation for Capco employees so that the company would be reimbursed at inflated rates.

In some cases, the grand jury said, the three defendants added names and work hours for employees who didn't work on either project but did work at Mr. Cousar's personal projects, including his Tube City Cafe restaurant and Chaton's Salon, both in McKeesport.

Similarly, employees who were being paid for work on the Pentagon project, called PENREN, instead were diverted to work at Tube City and the salon, at Capco's corporate offices, at the construction site of the Dick Corp. corporate offices in Tysons Corner, Va., and at the home of a niece of a senior AMEC supervisor on the Pentagon job.

During the week of Nov. 20, 2001, the government was billed for 70 hours of an employee's time at the Pentagon when the man, identified only as "DS," had really spent the week transporting a boat owned by a Dick Corp. vice president from Maryland to Florida.

Federal agents said that move was done on Mr. Cousar's orders, and Ms. Buchanan said there is no evidence the Dick officer knew of the fraud.

Mr. Cousar and the others also pilfered building materials meant for the Pentagon, according to the charges.

Capco was contracted to remove debris and perform drywall and other work, so company trucks were at the site every day in 2001 and 2002. At times, Ms. Buchanan said, Capco employees loaded flatbed trucks with such materials as ceiling tiles and drywall from the site and drove them to Mr. Cousar's warehouse in McKeesport, where they were stored.

Those materials were used in various other Capco projects, she said, including the Naval Weapons Station in Charleston, S.C., and the Dick offices in Virginia.

Ms. Buchanan would not address whether anyone at Dick knew the materials were stolen from the Pentagon, saying only that "Dick Corporation is not a defendant in this indictment."

Mr. Arena's alleged role in the fraud is also extensively detailed in the charges. As project manager, he was responsible for reviewing invoices submitted by Capco to AMEC for reimbursement as well as reviewing the numerous contract change orders that involved Capco.

Federal agents said he accepted a kickback by allowing Capco to pay for about $30,000 in remodeling and repair work on his waterfront house in Maryland.

When allegations later surfaced that he and Capco were committing fraud, the indictment said he, Mr. Cousar and Ms. Bradica tried to hide their personal relationship and the remodeling work paid for by Capco on behalf of Mr. Arena.

In that effort, they provided AMEC and the Department of Defense with a false invoice, prepared on Ms. Bradica's computer, and a fake check to make it look as if another construction company had done the work on Mr. Arena's home instead of Capco and that Mr. Arena had paid for it on his own.

Mr. Cousar and Ms. Bradica are also charged with defrauding the IRS of $26,000 by paying Capco employees overtime wages in the form of expense checks and then filing false employee withholding forms, resulting in an underpayment of wage taxes.

The case first became public two years ago when agents from the Criminal Investigation Division of the IRS, Department of Defense, FBI, Department of Labor and the U.S. Postal Inspection Service raided Capco and Tube City Cafe.

Since then, the U.S. attorney's office has filed forfeiture requests to seize Mr. Cousar's $500,000 house in Monroeville and the Capco offices on Walnut Street in McKeesport.

Capco, which is primarily a painting company, is a well-established business and a fixture in McKeesport. In addition to its work at PNC Park, the company won the contract to paint the new David L. Lawrence Convention Center and Heinz Field.