Summary

Renee Smith, owner of Tone Crack Seal & Supply, Youngstown, OH, was sentenced in U.S. District Court in Cleveland, OH, for fraudulently obtaining four highway paving contracts worth more than $515,000 that had been set aside for minority businesses. In a conspiracy with highway contractor Hardrives Paving & Construction, Inc., of Cleveland, Smith served as a minority front company through which Hardrives won contracts to do work. Smith was sentenced to 5 months in jail, 2 years’ supervised release, and a $400 fine.



Hardrives foreman Christ Minerd previously admitted that he took part in the conspiracy with Smith. He was ordered in April by a U.S. District Court judge in Cleveland to pay $8,750 in restitution and spend 1 year on probation for taking part in a scheme to submit fraudulent invoices to Mahoning County, OH, for asphalt that was never produced or used. Hardrives owner, James R. Sabatine, pleaded guilty in August 2001 to bribing public officials to maintain favored status in winning paving contracts and for submitting fake invoices for asphalt that was never applied. Sabatine’s sentencing date has not yet been set.