Friday, March 9, 2012

Chicago Grand Jury Returns Minority Set Aside Indictments

A federal Grand Jury in Chicago has followed up U. S. Attorney criminal informations with indictments of Elizabeth Perino and Anthony Capello, owners of two sham minority subcontracting firms which posed as woman owned businesses on City of Chicago construction contracts, but passed through more than $200 million of actual work to non-monority or woman owned firms, in violation of set aside rules.
Tracking criminal informations unsealed last month, the indictments accuse three subcontractors on City of Chicago contracts worth millions of dollars of defrauding the taxpayers by falsely claiming to have worked as certified woman owned or disadvantaaged businesses for which a percentage of work is set aside in City of Chicago contracting requirements. Perdel Contracting and Accurate Steel Installers, owned by Elizabeth Perino of Lockport and Diamond Coring, owned by Anthony Cappello of Homer Glen, are accused of submitting false invoices and purchase orders in support of minority and disadvantaged business set aside requirements on City of Chicago contracts with McHugh Construction Company. McHugh has not been accused of wrongdoing in the criminal charges.

Responding to the indictments, Chicago Mayor Rahm Emmanuel pledged to appropriate $11 million for better oversight of the city’ construction set asides.

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