Home -> Law Blog Directory -> Criminal Law Blogs -> Tanjeble

Criminal Law

: Tanjeble

How to Investigate MBE fronts- thanks Richmond

By Alison Jimenez

The City of Richmond Auditor looked into allegations by the Minority Business Development Department and by an anonymous tip reported through a hotline about MBEs being used as front companies to meet minority contracting goals.  You can read the well-organized report here although it does not delve into what type of investigation it did on the hotline tip. See the charts below about how hotlines help reduce fraud.  The Auditor reached the following conclusions in the report: ™ The prime contractor represented during the bid response that the MBE contractor would perform the roofing work and that they would receive 26.5% of the total contract price. However, the MBE contractor was used for only brokering procurement of materials and/or services for a 5% commission...continue to full post

Full post as published by Tanjeble on January 17, 2008 (boomark / email).