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 …

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 …

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 …

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 …

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 …

On October 31, 2019, Ahern Paining Contractors, Inc. (Ahern), of Woodside, New York, entered into a civil settlement agreement with the U.S. Attorney’s Office, Southern District of New York. Ahern agreed to pay $3 million to resolve allegations of fraud connected to contracted work on two DOT-funded public works projects: the Federal Highway Administration–funded Brooklyn Bridge Rehabilitation Project and the …