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Tag Archives: DBE fraud

A Reminder Not to Commit DBE Fraud

Posted in Disadvantage Business Enterprises (DBE), Public Bidding, Public Contracts

As has been discussed on this blog, the most common form of fraud involving the Department of Transportation’s disadvantaged business enterprise program, involves a “pass through” entity that performs little or no actual work on the construction project.  Under this common scheme, a general contractor hires a subcontractor that has been certified a DBE and… Continue Reading

What Happens When You Do Not Follow DBE Rules?

Posted in Disadvantage Business Enterprises (DBE), Public Contracts

You end up paying $1.15 million to the Justice Department to settle claims that you violated the False Claims Act.  As reported by ENR, Caddell Construction of Montgomery, AL, agreed to pay the Justice Department $1.15 million to settle charges that it violated the False Claims Act by —  you guessed it — committing DBE… Continue Reading

Contractors Settling DBE Fraud Cases Are Not Out of the Woods Yet

Posted in Public Contracts

Chris McCabe at has a post up about a two City of Philadelphia contractors, who reached settlement agreements with the City of Philadelphia related to alleged inaccurate invoices. Essentially, the City of Philadelphia claimed that Aramark, a food services contractor, overstated the percentage of its overall contract being performed by a certified MBE.  Aramark… Continue Reading

Another Guilty Plea in a DBE Case

Posted in Contracts, Public Contracts

If you have not gotten the point by now that you should take DBE regulations serious, you should.  The DOT Inspector General posted these two item on its web page today: “On September 11, 2012, Michael Paletta, president of Crossboro Construction Contracting, pled guilty in United States District Court, New York, New York, to a… Continue Reading

More DBE Fraud News

Posted in Public Contracts

A story in Oregon’s Daily Journal of Commerce states that the FHWA announced that an investigation revealed that three highway contractors – Bud Construction LLC, Emery and Sons Inc., and Salt and Pepper Construction Co. – “contrived a relationship” to meet DBE program requirements for a $35 million Oregon DOT project completed in February. According… Continue Reading

The Growing Prosecutorial Interest in DBE Fraud

Posted in Public Contracts

Yesterday, I “attended” an American Bar Association webinar on “Minority Contracting Programs: A Growing Criminal Risk to Corporations.”   The message was clear – federal prosecutions of DBE fraud are on the rise. Indeed, federal prosecution of DBE fraud has occurred in recent years in the following states:  Florida, Illinois, Kansas, Massachusetts, Minnesota, New York, Ohio,… Continue Reading