BY KEVIN
OKLOBZIJA
Three
Rochester contractors were charged with felonies and must pay fines and
continue to cooperate with the government’s investigation into improper use of
“pass through” minority contractors on the Rochester Schools Modernization
Program.
U.S.
Attorney James P. Kennedy Jr. announced on Tuesday that charges were brought
against Journee Construction Inc. of Gates, Bell Mechanical Contractor, Inc. of
East Rochester and Kaplan-Schmidt Electric, Inc. of Henrietta.
Between
April 2013 and November 2013, the defendants conspired with contractors to
defraud the Rochester Schools Modernization Program, a public-works project
created to renovate and improve school facilities in the city, according to the
U.S. Attorney’s office.
The
defendants created and submitted required documentation that falsely and
fraudulently represented that the contractors hired for program projects had
complied with the diversity plan established for the program, according to
Kennedy’s office.
Prosecutors
say the contractors had not complied, and did not intend to comply, with
program requirements.
In filing
the charges, the government entered into a deferred prosecution agreement (DPA)
with each defendant.
The DPA
stipulates that:
1. Defendants
fully cooperate with the continuing investigation;
2. Comply
with all applicable laws and requirements with respect to any work they do
involving disadvantaged business programs; and
3. Pay
fines. Journee must pay $70,000, Bell Mechanical $50,000 and Kaplan-Schmidt
$25,000.
Charges
against the companies will be dismissed if they fulfill all terms of the DPA.
“Disadvantaged
Business Enterprise programs such as this are intended to help businesses owned
by minorities obtain work on federally funded construction projects,” Kennedy
said in a news release. “Those who defraud the program in order to obtain
federal funds take advantage both of the taxpayers and the businesses that the
program is designed to assist. This office remains committed to exposing and
holding accountable (those) who pervert these programs to serve their own
self-interests.”
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