Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
    • GTPAC COVID-19 Resource Page
    • Cybersecurity
    • Veterans Verification Video
    • GTPAC Community
    • Other Training Audio & Video
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • COVID-19
  • New Client Application
  • Contact Us

Company and its owners charged with DBE fraud on 224 contracts dating back to 1995

June 25, 2015 By ei2admin

Two owners of Carl M. Weber Steel Service, Inc. (Weber Steel), of Kutztown, PA, were charged with one count of conspiracy to commit wire fraud, the Philadelphia U.S. Attorney’s Office announced June 16, 2015.

DBE Fraud HotlineThe conspiracy charge states that Dennis Weber, president of Weber Steel, and Dale Weber, vice president, engaged in a scheme to defraud the U.S. Department of Transportation through DOT’s Disadvantaged Business Enterprise program (DBE). Weber Steel, a bridge and highway construction contractor, was not a certified DBE, but set-up and utilized a sham DBE called Karen Construction Co., Inc. (Karen Construction) to obtain DBE subcontracts for bridge and highway construction.

From approximately April 1995 through November 2011, Karen Construction, posing as a DBE, obtained an estimated $18.7 million from approximately 224 federally-funded projects, when, in reality, it was controlled by Weber Steel, a non-DBE.

If convicted, defendants Dennis and Dale Weber each face a maximum sentence of five years in prison, two years of supervised release, a fine of up to $250,000, and a $100 special assessment.  Defendant Weber Steel faces a maximum sentence of five years of probation, a fine of up to $500,000, and a $100 special assessment.

The case was investigated by USDOT’s Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor’s Office of Inspector General/Office of Labor Racketeering and Fraud Investigations.

Source: https://www.fbi.gov/philadelphia/press-releases/2015/kutztown-steel-company-and-owners-charged-with-conspiracy

Filed Under: Contracting News Tagged With: DBE, DOL, false claims, FBI, fraud, IG, Justice Dept., sham, small disadvantaged business, USDOT, wire fraud

Recent Posts

  • The VA’s OSDBU Direct Access Program is hosting a large number of small business events
  • Construction firm pays $2.5 million to settle allegations of exploiting SDVOSB program
  • Five things to know about an 8(a) bona fide place of business
  • Paycheck protection program audits are upon us
  • What federal contractors should know about small business subcontracting plans

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

Construction firm pays $2.5 million to settle allegations of exploiting SDVOSB program

Mandatory breach notification requirements are coming for government contractors

EEOC announces EEO-1 data collection to open April 26th

GSA streamlines MAS program requirements for COVID-19 related vendors

Resurfacing contract costs $27.4 million for Henry County

Read More

Contracting Tips

Five things to know about an 8(a) bona fide place of business

Paycheck protection program audits are upon us

What federal contractors should know about small business subcontracting plans

CMMC: Some frequently asked questions

The Infrastructure Plan and The Davis Bacon Act

Read More

GTPAC News

The VA’s OSDBU Direct Access Program is hosting a large number of small business events

SBA hosting “Contract Bonds and Surety Bond Guarantee” webinar April 20th

GSA hosting “Getting on the GSA Schedule” webinar April 13th

NIH hosting 2021 small business program conference April 26-30th

Defense Counterintelligence and Security Agency hosting industry day and matchmaking May 6th and 20th

Read More

Georgia Tech News

Georgia Tech and partners to help NASA advance deep space exploration

Georgia Tech structure certified as ‘living building’

Georgia Tech creates new Office of Corporate Engagement

Delta Jacket wins 2021 Georgia Tech InVenture prize

Future of 5G is under the microscope at Georgia incubator

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2021 · Georgia Tech - Enterprise Innovation Institute