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Largest WMBE Fraud Ever?

By Alison Jimenez

So far three people have pleaded guilty in a scheme that federal prosecutors say defrauded the US and the Pennsylvania Department of Transportation of $121 million in federal contracts meant for minority owned businesses.  This is a classic example of the ?front company? scheme where a minority owned company wins the contract and the passes the work off to a non-WMBE for a fee.  The Republican Herald reports that to successfully cover the fraud, employees of Schuykill Products (the non-WMBE) used Marikina (the alleged front company) business cards, email addresses and magnetic placards. The fraud went on for 14 years!   Here are more stories on this case: 2nd Man Charged with Fraud  Exec Pleads Guilty to Fraud Schuykill Stole atleast $45 Million Filipino American in $121 Fraud Case Audit of Pennsylvania MBE Programcontinue to full post

Full post as published by Tanjeble on September 23, 2008 (boomark / email).