Monday, December 13, 2010

Construction companies commit fraud to avoid hiring Minorities

This is the number one, underreported, Black economic new story.

If you have ever driven by a construction site, even in a Black neighborhood, and wonder why only white, men were working, now you know why.....

Two giant construction companies are being investigated for fraudulently creating "fake" Minority shell companies. The companies were used to get around requirements to employ Women, Minority and Disadvantaged businesses as subcontractors.

The companies would hire a "Minority" company as a pass though company or have the company run the "payroll" while they continue to collect the money and employ the workers.

The Schiavone Construction Company admitted it had evaded requirements for 5-years and agreed to pay back $20 million dollars.

"Such schemes are wide spread in public works projects" the newspaper quoted law enforcement officials.

Well there you have it plain, old corruption in the construction industry.

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