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Courts and Crime

Allega to pay half a million dollar settlement
The Feds say Allega lied about subcontracting to minority- and women-owned businesses--a requirement under its contract

Valerie Brown

A company hired to oversee the runway expansion at the Cleveland Hopkins airport will pay half a million dollars to the U.S. Justice Department. Federal prosecutors accused the Anthony Allega Cement Contractor company of falsely claiming that it sub-contracted work to women- and minority-owned businesses.

The Justice Department says Allega paid subcontractors not to work at all or work very little. The investigation focused on one business, Chem-Ty Environmental, that was used a front company to hide purchases and work Allega was performing itself.

Mike Tobin is a spokesman for the Justice Department.

Mike Tobin talks about Allega's contract obligations

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“He said he was giving work to these companies, but in fact the company was doing the work itself," Tobin says. "To qualify for work out at the airport, the federal government and the Department of Transportation utilizes a program where a certain percentage of work has to go to companies owned by women, minorities or other groups.”

In 2007, the city of Cleveland banned Allega from future city contracts after conducting its own investigation.

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