A roofing contractor in Boise, Idaho, was ordered to pay a $65,000 fine and sentenced to three years of probation for fraudulently obtaining a Recovery funded contract.
According to court documents, Construction Services Corporation (CSC) made false claims regarding its eligibility for the federal government’s HUBZone program, which encourages economic development in historically underutilized business zones through set-aside contracts. To qualify for the small-business-only program, a firm must be owned by at least 51 percent by U.S. citizens and at least 35 percent of employees must live in the specific HUBZone area where the work is to be done.
As a result of its false claims, CSC was able to obtain a $274,283 Recovery contract from the Department of Agriculture in January 2010 for roofing work on a research facility in Corvallis, Oregon.
CSC performed and completed the work later that year.
CSC pled guilty to wire fraud and making a false statement to the government, according to U.S. Attorney Wendy J. Olson.
“Construction Service Corporation violated the public trust,” said Olson. “By falsely representing its eligibility for a federal contracting preference, this defendant obtained federal funds that should have gone to a contractor that was actually prioritizing economic development in underserved areas. This case was brought to its successful conclusion through the cooperative investigative work of many federal agencies, all of which well understand the need to protect taxpayers' money.”
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