Investigations

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Washington, DC Paving Firm Fined $900,000 in Bribery Conspiracy

A paving contractor, Fort Myer Construction Corporation (FMCC) of Washington, DC, was sentenced and ordered to pay $900,000 in fines and restitution, and serve a 5-year probation term. FMCC pleaded guilty in U.S. District Court in Washington, DC, to conspiracy to bribe inspectors of the District of Columbia Department of Public Works. This continuing OIG and FBI investigation has found three paving companies, two of their owners, and nine Public Works employees guilty of paying or receiving cash bribes in a scheme that involved approving inflated job tickets for asphalt that was never provided. The conspiracy has been tied to about 30 federally funded contracts in the District. Together, the three firms had been awarded more than $32 million in Federal aid funded by FHWA.



On April 16, FHWA will hear why Fort Myer Construction thinks it should not be debarred from Federal contract work. Regarding the other two companies, Granja Construction is debarred until June 2004, and C&F Construction voluntarily excluded itself from bidding on District of Columbia-funded contracts for 1-year period ending in February.