August 24, 2016
Upstate New York Contractor Agrees To Pay $1.75 Million To Settle DBE Fraud Allegations
On August 24, 2016, Concrete Applied Technologies, Corp. (CATCO), and Michael Salvadore collectively agreed to pay $1,753,140 to resolve Disadvantaged Business Enterprise (DBE) fraud allegations that they collaborated with a DBE to submit false filings to the Government in violation of the False Claims Act. Salvadore is the owner and chief executive officer of CATCO, which is located in Alden, New York.
Beginning in approximately 2009, CATCO routinely used American Indian Builders (AIB), a now-defunct DBE, as a pass-through materials supplier on at least 10 Federal Highway Administration (FHWA)-funded construction projects in New York State. Salvadore and CATCO admit that in each instance, CATCO submitted DBE utilization forms to State agencies identifying AIB as the materials supplier even though AIB did not perform a commercially useful function on the projects.
Separately, on August 19, 2016, CATCO entered into an Administrative Settlement and Compliance Agreement with FHWA for a period of 3 years in order to settle suspension and proposed debarment proceedings. CATCO, among other things, agreed to appoint a corporate compliance officer and hire an independent monitor to ensure compliance with the terms of the agreement with FHWA.
DOT-OIG is working this investigation jointly with the U.S. Environmental Protection Agency-OIG and the Federal Bureau of Investigation (FBI).