Man Pleads Guilty to MBE Fraud
"Romeo P. Cruz, 59, pleaded guilty Thursday (August 28) to conspiracy to defraud the U.S. and Pennsylvania governments and contractors. Cruz, a naturalized American citizen of Filipino descent, is president and owner of Marikina Construction Corp. and a related business, both run out of the basement of his home in West Haven, Connecticut"
"He admitted that Marikina actually was a front company for a Pennsylvania firm, Schuylkill Products Inc., and its subsidiary CDS Engineers Inc. Cruz admitted his company existed solely to qualify the two other firms for contracts meant for small and disadvantaged businesses, prosecutors said."
"From 1994 through 2007, Cruz's company obtained over $121 million in enterprise contracts for disadvantaged businesses. It passed all the work on to the Pennsylvania companies, and in return was paid a fixed fee, prosecutors said. Cruz also agreed to plead guilty to a federal tax offense at a later date and to cooperate with the investigation. Earlier this year two others pleaded guilty to federal charges: Dennis F. Campbell, formerly vice president of Schuylkill Products, of Cressona; and Timothy G. Hubler, former vice president of CDS Engineers Inc. Both are awaiting sentencing."
This incident is a reminder of how important it is for us and the NMSDC to certify businesses correctly. Companies should beware of so-called minority businesses who are self certified or are certified by organizations who do not look behind the veil.