May 25, 2022

Volume XII, Number 145

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May 24, 2022

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May 23, 2022

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Steel Construction Companies to Pay $440,000.00 to Settle DBE Fraud Allegations

On January 27, 2022, the U.S. Attorney’s Office in the Southern District of Illinois announced a $440,000.00 settlement with United Ironworkers (“United”), D&K Welding Services (“D&K”), Kim Rasnick (United’s President), and Dorrie Wise- Harris (D&K’s President) to settle a civil False Claims Act investigation. United and D&K are steel construction companies working on highway and bridge companies.

The U.S. Attorney alleged that United (a non-Disadvantaged Business Enterprise (“DBE”)) conspired with D&K “to provide materially false representations and information regarding ownership and control of D&K for DBE certification and recertification purposes.”  

According to the U.S. Attorney, “the DBE program is designed to provide business opportunities to minority and women owned businesses. Funds designated for that purpose should not be misallocated to businesses masquerading as legitimate DBEs.”

You can read more details in the Department of Justice press release here: https://www.justice.gov/usao-sdil/pr/us-settles-dispute-over-disadvantaged-business-enterprise-fraud

Also of note, the owners of another steel construction firm brought the allegations to light, and will receive $79,200 from the settlement proceeds under the False Claims Act.

©2022 Strassburger McKenna Gutnick & GefskyNational Law Review, Volume XII, Number 28
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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
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