Investigations

On May 10, the Federal Highway Administration debarred WMCC Incorporated (WMCC), Finleyville, Pennsylvania, and its owner, Watson Maloy, for a period of 3 years. Maloy previously pleaded guilty to conspiracy charges for his role in a fraud scheme involving federally funded bridge projects in Pennsylvania. WMCC, a certified Disadvantaged Business Enterprise (DBE), entered into DBE subcontracts valued at approximately $1.9 million with prime contractors. However, the firm failed to perform a commercially useful function.

 

Maloy admitted that, in 2012 and 2013, he and co-conspirators employed by Century Steel Erectors Co. LP (CSE) used WMCC as a front company to obtain profits from contracts slated for legitimate DBE firms. CSE staff, rather than WMCC personnel, performed and supervised the DBE subcontracts. CSE completed all the DBE work, including negotiating crane rentals, ordering supplies and materials, and recruiting union workers. In addition, Maloy admitted, to conceal the scheme CSE officials used WMCC letterhead and email accounts when communicating with general contractors and officials at the Pennsylvania Department of Transportation. CSE personnel also possessed WMCC business cards, T-shirts, and hard hats, as well as magnetic WMCC placards to hide CSE logos on construction vehicles.

 

DOT-OIG conducted this investigation with the Federal Bureau of Investigation and the Pennsylvania Turnpike Commission OIG.