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Three firms charged in connection with the Rochester schools modernization project 

The US Attorney's Office has filed charges against three businesses for allegedly defrauding the Rochester schools modernization program.

Journee Construction Inc., Bell Mechanical Contractors, and Kaplan Schmidt Electric were under investigation relating to the improper use of "pass through" minority contractors, according to a statement today from US Attorney James Kennedy, Western District of New York.

Kennedy's statement alleges that the three companies conspired with contractors between April 2013 and November 2013 and submitted required documents that "falsely and fraudulently represented that contractors hired for program projects had compiled with the Diversity Plan established for the program. "

"In truth and fact," the statement says, "the contractors did not comply, and did not intend to comply."

The government entered into an agreement with the defendants in which prosecution of the charges against them will be delayed if they comply with two major conditions: They must fully cooperate with the government's ongoing investigation and they must conduct all future business in compliance with all laws and regulations. 
click to enlarge East High School received renovations during previous stages of the facilities modernization effort. - FILE PHOTO
  • FILE PHOTO
  • East High School received renovations during previous stages of the facilities modernization effort.

As part of the agreement, the three companies are also required to pay financial penalties: Journee Construction will pay $70,000; Bell Mechanical Contractors will pay $50,000; and Kaplan Schmidt Electric will pay $25,000.



The charges will be dismissed if the companies comply with all terms of their agreement.

The Rochester office of the Federal Bureau of Investigation is conducting the probe into the schools modernization project contractors.

The $1.2 billion schools modernization project — a construction project — is now in its third phase. The mammoth initiative, which began more than a decade ago, has fully renovated many city schools, including East Upper and Lower, School 58, School 16, and Monroe High School.  The state has reimbursed much of the cost of the project.

A key component of the project was providing job training and employment for minority contractors. Some of the firms were too small to meet all the requirements needed, so they became subcontractors for larger companies.

Kennedy's statement said that the charges against the companies means that they have only been accused of a crime, but they are presumed innocent unless proven guilty.
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