Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site




Coatings Industry News

Main News Page

Contractor Agrees to $1M DBE Settlement

Tuesday, April 14, 2015

More items for Program/Project Management
More items from North America

Comment | More

ATLANTA—A Georgia general contractor will pay $1 million for false claims made on construction projects involving the Federal Highway Administration's Disadvantaged Business Enterprise program.

C.W. Matthews Contracting Inc., of Marietta, GA, entered into a civil settlement agreement with the U.S. District Court, Atlanta, the Department of Transportation's Office of Inspector General announced April 1. 

C.W. Matthews
© / BanksPhotos

Marietta, GA-based general contractor C.W. Matthews will pay $1 million for false claims made on federally funded projects.

The investigation was conducted with assistance from the FHWA and Georgia Department of Transportation (GDOT).

The federal DBE program is designed to ensure that small, disadvantaged companies can compete fairly for federally funded transportation-related projects. The program, established in 1981, requires DOT to set aside at least 10 percent of the funds for highway and transit financial assistance programs for DBEs.

GDOT's 'Biggest Contractor'

C.W. Matthews is one of the two biggest road contractors in metro Atlanta and has "traditionally been the [DOT's] biggest contractor," according to an article in The Augusta Chronicle. The company was paid $181 million for DOT road work in fiscal 2014, the newspaper reported, citing the state's Open Georgia website.

However, an investigation revealed that from approximately 2007 to 2010, C.W. Matthews filed "false and misleading" DBE reports to keep receiving payments under DOT-funded construction contracts.

DBE fraud

An investigation found that C.W. Matthews filed "false and misleading" DBE reports from about 2007 to 2010, according to the OIG.

The company submitted false reports to GDOT that represented that Longoria Trucking, an actual certified DBE, was doing the required DBE construction work. However, GE Robinson, a non-DBE firm, actually completed the work, the OIG said.

Compliance Agreement

On April 2, C.W. Matthews and the FHWA agreed to an administrative settlement and compliance agreement for a three-year period to settle administrative action by the FHWA.

Among other things, C.W. Matthews agreed to:

  • Appoint a corporate compliance officer;
  • Establish a compliance program; and
  • Retain an independent monitor to submit periodic reports on C.W. Matthews' compliance to the FHWA.

If the company violates the agreement, it could face suspension and debarment action by the FHWA.

DBE fraud has come under increasing scrutiny in recent years. In March, U.S. DOT debarred a Utah contractor, whose $13 million company far exceeded the $750,000 threshold for DBE status.


Tagged categories: Contractors; Department of Transportation (DOT); Ethics; Federal Highway Administration (FHWA); Funding; Roads/Highways

Comment Join the Conversation:

Sign in to our community to add your comments.

SAFE Systems, Inc.
Portable Dust Collectors for Tough Environments
Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.

SABRE Autonomous Solutions
The ALPHA1 provides a consistent finish day-in
day-out; job to job.

Tarps manufacturing, Inc.
QUALITY MADE IN AMERICA —Available near you!
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.

Industrial Vacuum Equipment Corp.
Hurricane Vacuums
& Dust Collectors
Vacuum and dust collector hose, filters and related accessories.

US Minerals
Hit Harder. Clean Faster.
Black Diamond abrasive products are the toughest, most effective blasting media and supply the superior power you need to get any job done.

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

SSPC: The Society for Protective Coatings
Join SSPC and Enhance
Your Career !

CHLOR*RID International Inc.
Companies that invest in corrosion control use CHLOR RID products
  • Soluble salt removal liquid
  • Test kits to verify contamination levels
  • Surface passivation to hold the blast
INFO@CHLOR-RID.COM 800.422.3217

Modern Safety Techniques
Modern Safety Techniques
With our unique LTCat, we can help to provide clean, safe breathing air to your workers. Take a look at our Breathing Air Systems, we supply at least twice as much charcoal as our competitors! Modern

Upgrade with the Bullard GenVX
Click here for your blast helmet.


Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL

The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us