Summary

On January 10, 2013, Michael Paletta, president of Crossboro Construction Contracting, was sentenced in United States District Court in the Southern District of New York (SDNY) to 3 years of probation, a $50,000 criminal fine, 100 hours of community service, and a $100 special court assessment.

On September 11, 2012, Paletta pleaded guilty to a mail fraud conspiracy.  Between approximately 1994 and March 2011, Paletta, on behalf of Crossboro (a non-DBE), conspired with MS Construction (a DBE) to perform construction work on various federally-funded bridge projects in Manhattan and other boroughs where MS Construction was the purported DBE subcontractor.  MS Construction was paid approximately 5% as its "fee" and relied upon Crossboro for performance of the actual work.

As part of his plea agreement, Paletta also agreed to a forfeiture of $23,813.  On September 13, 2012, Crossboro agreed to a civil settlement with the SDNY to resolve a civil false claims action.  The amount of the settlement was $355,164. 

This case is being worked jointly with the USDOL-OIG, the Port Authority of NY&NJ-OIG, and the New York City Department of Investigation.