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Upstate New York Contractors Suspended by FHWA in Connection with DBE Fraud Allegations

On May 24, 2016, James Beaudoin, former owner of Rexford Albany Municipal Supply Company, Inc. (RAMSCO), and former RAMSCO salesman John Leary were suspended from Federal contracting by FHWA, pending debarment proceedings. These suspensions are based on a February 1, 2016, civil settlement reached between Beaudoin and Leary, and the U.S. Attorney’s Office, Albany, New York.  Beaudoin and Leary agreed to pay $550,000 and $25,000, respectively. The settlement was reached in order to resolve DBE contract fraud allegations that they collaborated with a DBE to submit false filings to the Government in connection with the Bridge Avenue Bridge Reconstruction Project (BABRP) in Cohoes, New York. 

BABRP, valued at over $6.3 million, was funded by the American Recovery and Reinvestment Act. The arrangement was such that RAMSCO, a non-DBE, would provide the materials and bill prime contractor ING Civil through now-defunct DBE American Indian Builders & Suppliers, Inc. Beaudoin and Leary admitted in their settlement agreements that they took steps to aid ING Civil in making a false filing to the contracting agency. 

DOT-OIG is working this case jointly with the FBI, EPA’s Office of Inspector General, and the New York State Department of Transportation’s Investigations Bureau.

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.