Convicted Illinois Firm, Individuals Excluded From Highway Projects - Brief Article

Public Roads, Nov, 1999

FHWA has permanently excluded six Illinois companies and individuals from federally funded highway construction projects. This is the first time FHWA has used the voluntary exclusion mechanism and the first time a company or individual has been permanently barred from participating in federally funded highway projects.

Palumbo Bros., Inc.; Monarch Asphalt Co., Inc.; and Orange Crush Recycle Company, Inc. were convicted in U.S. District Court of the Northern District of Illinois of racketeering and mail fraud. They falsified weight tickets for materials never used during highway construction. Peter Palumbo and sons, Joseph and Sebastian Palumbo were convicted of filing false documents under the Employee Retirement Income Security Act (ERISA), which contained falsely understated hours worked by employees and of submitting reduced payments on behalf of the employees to union health and pension funds. These companies and individuals are permanently excluded from participating in any manner in federally funded highway projects, including construction, maintenance, oversight, and provision of materials.