Massachusetts Subcontractor Manager Sentenced to 15 Months Incarceration and Ordered to Pay Nearly $53,000 in Fines and Restitution for Conspiracy Role in False Labor Rate Charges on Central Artery Tunnel Projects
December 20, 2007
On December 20, 2007, Steven Bowers, a former Project Manager for Mass. Electric Construction Company (MEC), a subcontractor to McCourt/Obayashi (MC/O)––the prime contractor on the Central Artery Tunnel (CA/T) Project’s tunnel finishes contract––was sentenced to 15 months in prison and 3 years supervised release and fined $5,000 in U.S. District Court, Boston, Massachusetts. Mr. Bowers was also ordered to pay a $9,900 special assessment and $38,000 in restitution. MEC had a $21.5 million subcontract that included the installation of electrical conduit and wiring in the tunnel. This investigation was predicated on information that MEC was conducting an internal investigation into allegations that one of its employees recorded inaccurate information on time sheets used to compile payroll for foremen working on a CA/T Project contract. During DOT/OIG’s investigation of MEC’s self–reporting, it was discovered that Mr. Bowers and two other MEC employees conspired to submit false time and materials reports to MC/O and ultimately the CA/T Project for payment knowing the reports falsely stated that particular electricians were journeymen when in fact they were apprentices. The loss to the Federal government is estimated to be approximately $80,000. The results of this investigation will be furnished to the Federal Highway Administration for suspension/debarment consideration. The investigation was worked jointly with the U.S. Department of Labor/OIG.