Five New York construction contractors have been fined for allegedly falsifying working with minority- and conmen-owned businesses, according to New York state Attorney General Eric Schneiderman. The five contractors reported they had subcontracted with minority- and women-owned businesses as required by law but, in fact, they received materials and labor from non-eligible firms and in some cases gave kickbacks in exchange for falsified documentation. The five firms have agreed to pay $825,000 in fines.
The alleged fraud occurred between 2012 and 2014 during the first phase of construction in Rochester, NY, which involved 13 schools. Of the $825,000 total fines, around $272,000 will go back to the school construction projects as restitution and $150,000 will go to the unnamed whistleblower. The reminder of the fine money will reimburse the state for enforcement efforts and more.
The five contractors involved in the scheme were:
- Concord Electric Corp., based in Rochester; fined $350,000
- Manning Squires Hennig, based in Batavia; fined $200,000
- Hewitt Young Electric LLC, based in Rochester; fined $160,000
- Michael A. Ferrauilo Plumbing and Heating Inc., based in Rochester; fined $90,000
- Mark Cerrone Inc., based in Niagara Falls; fined $25,000
(more on the NY contractors' scheme to falsify work with minority- and women-owned businesses...)
