Baltimore Roofing Firm Accused of $408,600 Fraud In Subcontractor Dealings, Exploiting County's Minority And Women-Owned Business Initiatives

BALTIMORE COUNTY - A report from the office of Baltimore County Inspector General Kelly Madigan reveals that a roofing firm in Baltimore City defrauded Baltimore County by misrepresenting its dealings with a subcontracting company.

The report details how an unnamed firm used Baltimore County's requirements to award more contracts to minority-owned and women-owned businesses to inflate the amount of money it agreed to pay subcontractors.

According to the report, the firm was awarded a $1.8 million contract to replace the roof of the Baltimore County Police Department's building in Towson. In its bid, it claimed to pay the subcontractor $449,500, or 25% of the contract, to meet the county's mandate of supporting minority-owned and women-owned businesses. However, the firm only paid $40,900, or 2%, to the subcontractor.

The report states that despite signing and submitting a document under penalties of perjury that they had fulfilled their obligation to the subcontractor, the arrangement remained hidden for several months.

According to the Inspector General's Office, the contract compliance oversight office was understaffed, and the officer assigned to the project lacked time for site visits or other contract compliance verification methods.

Potential penalties for underutilizing or failing to use minority or women-owned firms or not providing the proper documentation can lead to a fine of up to 10% of the contract value or a five-year ban on receiving Baltimore County contracts.

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