Connecticut Construction Company Agrees to Pay $2.4 million for DBE Fraud
On April 3, 2014, Manafort Brothers, Inc. (Manafort), a construction company based Plainville, Connecticut, agreed to pay $2.4 million as part of a civil settlement agreement with the United States Attorney's Office in New Haven, Connecticut, in connection with their role in a Disadvantaged Business Enterprise (DBE) pass-through scheme. A non-prosecution agreement was also reached with Manafort to resolve the company's corporate criminal liability.
This investigation was initiated upon a referral from the Connecticut Department of Transportation and the Connecticut Division of the Federal Highway Administration (FHWA). The investigation revealed that Manafort utilized a DBE subcontractor as a pass-through entity on the federally-funded $40 million Route 72 relocation project in Bristol, Connecticut.
Manafort and the FHWA have also entered into an Administrative/Compliance Agreement wherein additional administrative sanctions will not be initiated in consideration of Manafort’s agreement to independent monitoring and the institution of a corporate compliance program.
This case was jointly investigated with the Federal Bureau of Investigation and Department of Labor, Office of Inspector General.