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Big Dig Subcontractor Pleads Guilty to Fraud

On February 26, Island Lath & Plaster Inc. (ILP) pled guilty in U.S. District Court, Boston, Massachusetts, to a one count information charging conspiracy to make false claims and false statements on a highway project. ILP admitted it conspired to impede the lawful execution of the DOT’s Disadvantaged Business Enterprise (DBE) regulations and submitted false information in payment requests for time and materials (T&M) change order work as a subcontractor on a Central Artery/Tunnel (CA/T) Project contract. A sentencing date has yet to be set. ILP performed work on the CA/T Project contract on behalf of Adams Management Group, Inc. (AMG). AMG was to work as a DBE subcontractor to the primary contractor McCourt/Obayashi, J.V. Instead, the work was substantially performed by ILP, a non–DBE company, by agreement with AMG, In addition, ILP engaged in a scheme to overbill the CA/T by falsely categorizing and billing AMG apprentice workers at higher rates for T&M work performed on the project. ILP also prepared false T&M billings that AMG submitted to the CA/T Project.