Investigations
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July 1, 2016
Owner of New Jersey-Based DBE Pleads Guilty to Bankruptcy Fraud as Part of an On-Going DBE and Prevailing Wage Fraud Investigation
Summary
On July 1, 2016, Miguel Demenjon, owner and president of a New Jersey disadvantaged business enterprise (DBE), Mimosa Construction Inc. (Mimosa), pleaded guilty to a Superseding Information in U.S. District Court, New York, New York, to the concealing of assets in a bankruptcy proceeding. This guilty plea comes as part of an on-going DBE and prevailing wage fraud investigation.
Mimosa performed work on various FHWA-funded bridge projects in the New York metropolitan area, including the Alexander Hamilton Bridge Rehabilitation Project (AHBP), where Mimosa had a $7.7 million sub-contract. The AHBP, at a cost of $416 million, was the largest single-contract construction project in the history of the New York State Department of Transportation when it was awarded. It was funded almost entirely by Federal funds. While AHBP was on-going, Demenjon declared bankruptcy. DOT-OIG developed information indicating that Demenjon concealed and transferred assets of Mimosa to undermine the bankruptcy proceedings. DOT-OIG is conducting this investigation jointly with the DOL-OIG.