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Investigations

Date

Company Official Guilty of DBE Fraud

On September 11, 2012, Michael Paletta, president of Crossboro Construction Contracting, pled guilty in United States District Court, New York, New York, to a mail fraud conspiracy.  Between approximately 1994 and March 2011, Mr. Paletta, on behalf of Crossboro (a non-DBE), conspired with MS Construction (a DBE) to perform construction work on various federally-funded bridge projects in Manhattan and other boroughs where MS Construction was the purported DBE subcontractor.  MS Construction was paid approximately 5% as its "fee" and relied upon Crossboro for performance of the actual work.

As part of his guilty plea, Mr. Paletta agreed to a money forfeiture of $23,813.

This case is being worked jointly with the USDOL-OIG, the Port Authority of NY&NJ-OIG, and the NYC-DOI.