California Company Agrees To Pay $650,000 as Part of a Deferred Prosecution Agreement for DBE Violations

On April 8, 2022, G&C Equipment Corporation (G&C), a California-based construction materials supplier, entered into a deferred prosecution agreement (DPA) with the U.S. Attorney’s Office for the Central District of California. The DPA required G&C to pay a $650,000 criminal penalty for making false statements regarding the company’s eligibility to participate in DOT’s Disadvantaged Business Enterprise (DBE) Program. Specifically, in 2016 and 2017, G&C submitted affidavits that underreported the company’s gross income to qualify for the DBE program. Under the terms of the DPA, G&C agreed not to apply for DBE certification at any time during the term of the DPA and G&C’s owner, Eugene Hale, agreed not to apply for DBE certification at any time in the future.

https://www.oig.dot.gov/library-item/38937?utm_medium=email&utm_source=govdelivery