Construction firm head pleads guilty in PA highway scheme

By Charlie Morasch, Land Line contributing writer | 11/15/2012

The president and owner of a Pennsylvania construction firm has pleaded guilty for his role in a scheme to pad billing statements for a $5.2 million road project.
John V. Colona, president and owner of JVC Contracting, Inc., pleaded guilty Nov. 6 in U.S. District Court in Philadelphia to making false statements in connection to the payroll and benefits scheme.
According to the U.S. Department of Transportation Office of Inspector General, JVC Contracting worked as the primary contractor in 2003 for a U.S. DOT-funded project to resurface, reconstruct and widen 1.6 miles in Horsham Township, PA.
Chester Springs, PA-based JVC Contracting submitted 40 certified payroll reports to the Pennsylvania Department of Transportation that claimed JVC paid union employee fringe benefits.
Based on the payroll reports, PennDOT paid money to JVC Contracting, though an investigation found the company failed to pay nearly $70,000 in fringe benefits to 33 eligible workers.
Colona admitted those payroll reports were false.
The investigation was conducted jointly by the U.S. DOT-OIG; the Federal Bureau of Investigation; the U.S. Department of Labor; the Department of Labor-Employee Benefits Security Administration; the Department of Labor-Wage and Hour Division; and U.S. Department of Housing and Urban Development-OIG.

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