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 …

How the MTA meets its diverse contracting goals in the era of COVID-19

Michael Garner, the MTA’s chief diversity officer, discusses how the agency’s minority- and women-owned business program has met the challenges of the pandemic in an interview with City & State. New York state in fiscal year 2021 paid an unprecedented $3 billion to the state certified minority- and women-owned business enterprises (MWBEs). And the state exceeded its own MWBE official …

U.S. Settles Dispute Over DBE Fraud

U.S. Attorney’s Office Southern District of Illinois issued the following announcement on Jan. 27. FAIRVIEW HEIGHTS, Ill. – United Ironworkers (“United”), D&K Welding Services (“D&K”), Kim Rasnick, and Dorrie Wise-Harris have agreed to pay the United States and the State of Illinois $440,000 to resolve a civil False Claims Act investigation relating to fraud on the Disadvantaged Business Enterprise (“DBE”) programs of …

DBE Fraud After Exceeding PNW

AUSTIN – U.S. Attorney Ashley C. Hoff of the Western District of Texas announced today that Muniz Concrete and Contracting, Inc. (“Muniz Concrete”) and its owner, Jose Juan Muniz, have agreed to pay $188,879.59 to resolve allegations they violated the False Claims Act by falsely certifying their compliance with certain requirements of the Department of Transportation’s Disadvantaged Business Enterprise (“DBE”) …

New York Painting Contractor Settles DBE Fraud Allegations

On July 12, 2021, Spectrum Painting Corp. (Spectrum), entered into a civil settlement agreement with the U.S. Attorney’s Office for the Southern District of New York. Spectrum agreed to pay $400,000 to resolve allegations of fraud connected to contracted painting work on the Federal Highway Administration–funded Brooklyn Bridge Rehabilitation Project and the Federal Transit Administration–funded Queens Plaza subway station painting …

$692K DBE Fraud Settlement The Tappan Zee Bridge Replacement Project

Defendants Repeatedly Failed to Disclose That a Non-DBE Subcontractor Performed Work Exclusively Attributed to Their DBE The United States filed and settled a civil fraud lawsuit against NAUGHTON ENERGY and two of its owners, its president, MARIETTE NAUGHTON, and her husband, JOSEPH NAUGHTON.  NAUGHTON ENERGY, a Pennsylvania-based fuel distributor, supplied diesel fuel to vehicles and equipment used in connection with …

DBE CUF Consequences

Connecticut Contractor Agrees To Pay $3.2 Million To Resolve Criminal and Civil Investigation On January 8, 2021, the U.S. Attorney’s Office for the District of Connecticut entered into a civil settlement agreement with Ducci Electrical Contractors, Inc. Ducci agreed to pay more than $3.2 million plus interest to resolve allegations that it violated the False Claims Act.   On the …

$4.35M DBE/Small Business Fraud Settlement

On April 30, 2020, the U.S. Attorney’s Office for the Northern District of New York entered into a civil settlement agreement with Northland Associates, Inc. (Northland); JDS Construction (JDS); James Tyler, co-owner and president of Northland/JDS; and the Diverse Construction Group, LLC (Diverse). The four defendants agreed to pay a total of $4.35 million to resolve civil False Claims Act …

Feds charge SF Public Works Director Mohammed Nuru with fraud

Federal authorities charged San Francisco Public Works Director Mohammed Nuru and high-profile restaurateur Nick Bovis with fraud Tuesday following a public corruption probe. The schemes involved an envelope of cash, fraudulent city contracts, improper gifts from a Chinese developer and a $2,000 bottle of wine, according to authorities. To read more, click here.

Pennsylvania Man Sentenced to Prison for DBE Fraud Scheme

On November 6, 2019, Stamatios “Tom” Kousisis was sentenced in U.S. District Court, Philadelphia, Pennsylvania, to 70 months’ imprisonment, 36 months’ supervised release, and $18,600 in fines and fees for his role in a multimillion dollar Disadvantaged Business Enterprise (DBE) fraud scheme. In August 2018, Kousisis, and his employer, Alpha Painting and Construction, Inc. (Alpha), were found guilty of wire …