September 24, 2021

Volume XI, Number 267

Advertisement

September 23, 2021

Subscribe to Latest Legal News and Analysis

September 22, 2021

Subscribe to Latest Legal News and Analysis

September 21, 2021

Subscribe to Latest Legal News and Analysis

Painting Contractor to Pay $400,000.00 to Settle Violation of DBE Program Rules

On July 13, 2021, the U.S. Attorney’s Office in the Southern District of New York announced a $400,000.00 settlement with Spectrum Painting Corp. (“Spectrum”) to settle civil fraud claims. The U.S. Attorney alleged that Spectrum “fraudulently obtained payments on two federally funded construction projects by causing misrepresentations of compliance with Disadvantaged Business Enterprise (“DBE”) rules.” This program is designed to encourage and increase the participation of women- and minority-owned businesses in federally funded projects.

Spectrum is a New York-area painting contractor and is alleged to have caused the prime contractors on two projects to “misrepresent that Tower Maintenance Corp. (“Tower”), a certified DBE, was solely performing work on the two projects.” Spectrum, a non-DBE, performed much of that work, not Tower.

According to the press release, Manhattan U.S. Attorney, Audrey Straus stated, “This settlement reflects this Office’s commitment to root out DBE fraud in federally funded contracts so that legitimate DBEs can compete fairly for public construction projects.” The United States Department of Transportation Office of Inspector General Special Agent-in-Charge Brian Gallagher vowed, “We will hold accountable those who conspire to misrepresent their compliance with program requirements to obtain taxpayer supported contracts, thereby undermining the DBE program’s goal of expanding opportunities for small business.”

You can read more details in the Department of Justice press release here

©2021 Strassburger McKenna Gutnick & GefskyNational Law Review, Volume XI, Number 195
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Danielle L. Dietrich SMGG Attorney Pittsburgh, PA
Shareholder

Danielle L. Dietrich, Shareholder in the Pittsburgh Office of SMGG, focuses her practice in the areas of women and diverse-owned businesses, healthcare, elder law and litigation.  She has a broad range of experience in providing legal counsel and advice to her clients (both large and small), as well as having handled a wide range of disputes and litigation in Pennsylvania, Ohio and West Virginia.

A large portion of Ms. Dietrich’s practice focuses on the representation of women and diverse-owned businesses.  That practice includes assisting these...

(412) 281-5423
Advertisement
Advertisement
Advertisement