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Owner of Defunct New Jersey-based DBE Subcontractor Sentenced for Her Role in a DBE Scheme

On January 10, 2014, Eva C. Glasgow, owner of now-defunct Eva Glasgow Contractors, Inc. (EGC), was sentenced in U.S. District Court, Camden, New Jersey, to 3 years’ probation, a $75,000 fine, and $4,316 in restitution. 

Glasgow previously pleaded guilty to making false statements on Disadvantaged Business Enterprise (DBE) Utilization Reports associated with an FHWA-funded project, and false statements relating to prevailing wage statutes contained in the Davis Bacon Act.

Our investigation revealed a DBE fraud scheme involving EGC that occurred on a $26 million FHWA-funded road construction project in Collingswood, New Jersey. JPC Group, Inc. (JPC), the prime contractor, and Beneficial Soil Solutions, Inc. (BSS), a subcontractor based in Maryland, conspired with Glasgow to utilize EGC as a pass-through in order for JPC to claim credit for meeting DBE contract requirements. The conspiracy resulted in JPC claiming $3,158,820 in fraudulent DBE work that was actually performed by a non-DBE. Additionally, EGC submitted false certified payroll records to New Jersey, claiming that EGC employees that did work at the construction site were paid the prevailing rate and benefits, when in fact they were not.

This case was worked jointly with the U.S. Department of Labor-OIG and IRS-CID.