Highway Construction Contractor Indicted on Fraud Charges in Connection with DBE Fraud Scheme
On May 16, 2013, a federal grand jury in Boise, Idaho, returned a superseding Indictment that charges Elaine Martin, President, MarCon Construction, with false statements, conspiracy, wire fraud, mail fraud, and obstruction of justice in conjunction with a DBE fraud scheme. It also seeks forfeiture of over $9 million. Darrell Swigert, a minority shareholder, was also charged in the scheme.
It is alleged that as early as 2000, and continuing through January 2012, Martin took steps to lower her personal net worth, such as acquiring, holding and transferring assets into the names of other individuals. Martin's actions allowed MarCon to fraudulently maintain its certification with the U.S. Department of Transportation's Disadvantaged Business Enterprise (DBE) Program. It is further alleged that Marcon received more than $6 million in government contracts based on the company's fraudulently obtained DBE status in the states of Idaho and Utah.
We are investigating this case jointly with the Internal Revenue Service, the Federal Bureau of Investigation, and the U.S. Small Business Administration Office of Inspector General.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.