Cleveland: Allega to pay Justice Dept. $500,000

4:32 PM, Apr 23, 2012   |    comments
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CLEVELAND -- Anthony Allega Cement Contractor Inc. will pay the U.S. Justice Department half a million dollars to settle claims it falsely claimed credit for complying with minority contractor rules on a big runway project at Cleveland Hopkins International Airport.

The Justice Department announced the resolution Monday.

Federal prosecutors accused Allega of submitting bogus claims to make it look like the company was in compliance with the government's requirements for minority and women contractors.

Compliance was necessary to keep the contract on the $130 million runway expansion.

Investigators found that minority contractors who were hired to do specific contracts did very little work and answered to Allega employees.

In 2007, a city probe alleged Allega used "front" companies to get around city regulations on subcontracting work to women and minorities.

The federal investigation examined the role of Chem-Ty Environmental. It found that Chem-Ty "didn not perform a commercially useful function" for the $8 million-plus contract it got from Allega.

At least one Chem-Ty official claimed she was paid for doing no work.

Cleveland Mayor Frank Jackson then banned Allega from doing additional city work.

Company owner John Allega had denied allegations of wrongdoing.


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