Minority Certification

Feds: Prime Contractor Supplied Staff To WBEs on Chicago Bridge Project

by administrator · Comments 0

“The prime contractor on a Chicago bridge project shuttled its employees to woman-owned steel and concrete subcontractors hired to comply with government hiring goal programs, and later rehired the same workers in 2006 and 2007, federal prosecutors charge.

As part of the charges made last month against Elizabeth Perino, 57, the owner of two companies accused of serving as an illegal “pass-through” to help prime contractors fulfill subcontracting requirements for woman-owned businesses (WBEs) and disadvantaged businesses (DBEs) on the North Avenue Bridge project, the U.S. attorney in Chicago amassed different types of evidence of fraud. An essential part of the alleged fraud is that Perino’s companies performed no useful commercial function.

Chicago Mayor Rahm Emanuel pledged $11 million to be used to develop M/WBE programs with greater oversight. The city plans to begin enforcing strict compliance initiatives including unannounced visits to city job sites, strengthening M/WBE certification requirements and training courses for general contractors and their subs on M/WBE fraud.”

Click here to access the full news article

Ex-Head of Pa. Concrete-Beam Firm Convicted in DBE Fraud Case

by administrator · Comments 0

“The former chief executive of a Pennsylvania company that made concrete bridge beams has been convicted on multiple counts of fraud and money laundering in what the U.S. Dept. of Transportation says is the largest reported Disadvantaged Business Enterprise fraud in the department’s 45-year history.

U.S. officials said the alleged scheme extended from 1993 to 2008 and involved more than $136 million in federal-aid transportation contracts.

Since 1983, U.S. DOT has been required by law to make sure that at least 10% of its authorized highway and transit funds go to DBEs. The department has a single DBE goal that includes companies owned by women or members of minority groups.

Justice says the alleged conspirators used Marikina Construction Corp., a small Connecticut firm, as a front company to gain subcontracts designated to go to DBEs.”

Ensure project compliance by doing business with Assurance Screening. Be Sure.

Click here to access the full news article

Contractors Settle Suit Over Hiring

by administrator · Comments 0

“Federal prosecutors and the contractors building the East Side Access passage from Long Island to Grand Central Terminal have quietly settled a civil lawsuit that accused the companies of lying about their compliance in hiring disadvantaged businesses as subcontractors on the federally funded project.

The lawsuit, which was brought by the office of the U.S. attorney in Manhattan, Preet Bharara, alleged that the contractors “engaged in lies and subterfuge” to make it appear that they had hired disadvantaged businesses as subcontractors, as required by federal regulations, when they in fact hadn’t.”

Ensure project compliance by doing business with Assurance Screening. Be Sure.

Click here to access the full news article

Federal Investigation Targets Chicago M/WBE Program

by administrator · Comments 0

“Attempting to crack down on a decades-old scam in which front companies perform subcontracts under minority/women-owned business enterprise, or M/WBE, contracting programs, the city of Chicago says it will spend $11 million for improved programs with better oversight. The push follows a federal probe into a company accused by prosecutors of operating as a “sham pass-through” subcontractor on some of the city’s biggest public works.”

Ensure project compliance by doing business with Assurance Screening. Be Sure.

Click here to access the full news story