DBE Company and Executive Sentenced for DBE Fraud and Ordered to Pay Over $115,000 in Fines and Restitution
On January 2, 2008, McDaniels Construction Corporation, Inc. (MCC) and MCC’s Chief Executive Officer, Daniel Moncrief, was ordered by a U.S. District Court judge in Columbus, Ohio, to pay $105,669 in restitution for making a false statement on a Federal highway project. Mr. Moncrief was sentenced to 5 years probation and 100 hours of community service. MCC was sentenced to 3 years probation, fined an additional $10,000, and ordered to conduct 100 hours of community service––to be completed by Eric GIRARD, MCC’s President and Treasurer.
This joint investigation with the U.S. Department of Labor/OIG alleged that MCC, a certified Disadvantaged Business Enterprise (DBE) company, was acting as a pass–through DBE company on a federally funded highway project worth $37 million. The prime contractor for a portion of the project, Kokosing Construction Corporations, certified to the Ohio Department of Transportation that MCC was to perform seeding, mulching, and ditch protection as the DBE subcontractor. However, a non–DBE contractor, Deitering Landscaping Incorporated (DLI), performed the work. MCC received a 5 percent fee for acting as a DBE front company. MCC and Mr. Moncrief have been referred to FHWA and ODOT for debarment.