Pa. Construction Co. Execs Charged In $19M Highway Scam

Law360, New York (June 17, 2015, 3:10 PM EDT) -- The owners and operators of two Pennsylvania highway construction companies linked to a scheme that allegedly defrauded the U.S. Department of Transportation of $18.7 million by falsely securing contracts under the Disadvantaged Business Enterprise program were indicted in federal court on Tuesday.

In two separate complaints, the owners of Weber Steel Service Inc. and Karen Construction Company Inc., both based in Kutztown, Pennsylvania, were accused by federal prosecutors of perpetuating a scheme lasting several years to obtain DBE subcontracts for work on federally funded highway construction projects by posing Karen Construction as a certified DBE, when in fact it was set...

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