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Cherry Hill Construction Company and Company Officials Suspended by FHWA

On April 9, 2015, the Federal Highway Administration (FHWA) suspended Ivan Sachs, President; Rita Sachs, Vice-President; Robert Sachs, Treasurer; and Cherry Hill Construction Company, Inc. (Cherry Hill), from doing business with the government. 

On January 13, 2015, Cherry Hill, a North Branford, Connecticut, based construction firm, pleaded guilty in U.S. District Court, New Haven, Connecticut, with filing a false tax return and making a false statement in relation to documents required by the Employee Retirement Income Security Act of 1974. The investigation determined that Cherry Hill submitted falsified certified payrolls on Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) projects, including multiple American Recovery and Reinvestment Act (ARRA) projects.

A review of Connecticut Department of Transportation (ConnDOT) records revealed that Cherry Hill, serving as a subcontractor on the $101 million FHWA/FTA funded New Haven Line Catenary and Five Bridges project, submitted falsified certified payrolls that overstated Cherry Hills' pension plan contributions. The investigation further determined that Cherry Hill also submitted falsified certified payrolls on three ARRA funded municipal projects.

We are conducting this investigation with the Internal Revenue Service - Criminal Investigations and the U.S. Department of Labor - Office of Inspector General.

Note: A suspension or debarment frequently covers a specific period of time. Please consult the System for Award Management to determine whether a company or individual is currently suspended or debarred.