Investigations

 
August 16, 2010

Former Owner of Schuylkill Products Pleads Guilty to Largest DBE Fraud in USDOT History

 
 
 
 

Summary

On August 16, 2010, Ernest G. Fink, Jr., pled guilty to conspiracy to defraud the U.S. Department of Transportation (USDOT) and commit wire and mail fraud in connection with a $136 million disadvantaged business enterprise (DBE) fraud scheme -- the largest in USDOT history.  Mr. Fink admitted to participating in a 15-year conspiracy to defraud USDOT, Pennsylvania Department of Transportation (PennDOT) and Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.  Mr. Fink admitted today that between 1993 and 2008 he and other executives at Schuylkill Products, Inc. (SPI) diverted over 300 PennDOT and SEPTA construction contracts reserved for DBEs to SPI and CDS Engineers, Inc., two non-DBE companies.  Mr. Fink and his co-conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.

Please click the web link to view the press release from the US Attorney's Office for the Middle District of Pennsylvania.

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