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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.