Local businesses face stiff fines for defrauding Rochester City Schools

Local News

ROCHESTER, N.Y. (WROC) — Three local businesses are facing felony charges for taking money from Rochester’s School Modernization Program in 2013.

According to the United States Attorney’s Office, Journee Construction, Bell Mechanical Contractors and Kaplan Schmidt Electric will all have to pay stiff fines. The highest being $70,000.

The companies allegedly created and submitted documentation which falsely showed that contractors hired for program projects had complied with the program’s Diversity Plan. However, the U.S. Attorney’s Office says the contractors had not complied and did not intend to comply.

U.S. Attorney James Kennedy released a statement on Tuesday saying:

“Those who defraud the program in order to obtain federal funds take advantage of both of the taxpayers and the businesses that the program is designed to assist.”

James Kennedy, U.S. Attorney

Each company has entered into a deferred prosecution agreement and if they fulfill all of the terms and conditions of those agreements, the charges against them will be dismissed.

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