Monday, July 16, 2012

Boise Construction Companies Sentenced For Defrauding Feds

Posted By on Mon, Jul 16, 2012 at 1:38 PM

McDonald Roofing and Construction of Boise was sentenced in federal court today for its guilty plea to defrauding the U.S. government for work to be performed at the National Interagency Fire Center. A $218,000 contract was awarded to the Boise construction company on the false assumption that McDonald Roofing was an eligible company.

The federal government's HUBZone Program encourages economic development in historically underutilized business zones. According to federal prosecutors, McDonald Roofing admitted that it made false statements to the U.S. Small Business Administration concerning its eligibility for HUBZone contracts.

"McDonald Roofing Corporation violated the public's trust,” said U.S. Attorney Wendy Olson. “This contract should have been awarded to a contractor that was actually prioritizing economic development in underserved areas."

McDonald was sentenced to three years of probation and fined $5,000 for its guilty plea to wire fraud.

In a related case, Construction Service Corporation, also of Boise, was sentenced in federal court to three years probation and a $65,000 fine for fraud related to government contracting.

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