New York Construction Company President Sentenced to Three Years Probation for DBE Fraud Scheme
On June 17, 2011, Stephen Funny, president of Fairwiew Contracting Corporation (Fairview) was sentenced in U.S. District Court, Central Islip, New York, to three years probation and ordered to pay $100 special assessment for his role in a $7.9 million Disadvantaged Business Enterprise (DBE) fraud scheme.
Between January 2000 and December 2001, Fairview, a certified DBE, obtained three DBE subcontracts from the Perini Corporation (Perini) to install rebar. Mr. Funny conspired with Walter Bale, the owner of Walter Construction Associates (WCA), to have WCA perform the work on the subcontracts. Mr. Funny also transferred Mr. Bale's employees and expenses to Fairview's books and records to give the false appearance that Fairview was performing the DBE subcontracts for Perini.
The investigation was conducted by the Federal Construction Fraud Task Force for the Eastern District of New York, whose members include the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and the New York City Department of Investigation.