CITY HALL — A fraudulent minority-business contractor has agreed to repay the city $130,000 in a court settlement, according to the quarterly report issued Monday by Inspector General Joe Ferguson.
But Ferguson's office originally estimated the city's losses at $1.4 million in 2010 for the "fraud scheme" in which "falsified waivers" were submitted claiming work done by minority- and women-owned businesses. In fact, according to the report, "the certified firms did little or no work."
The report said two firms and the prime contractor, who were not identified, were barred from doing business with the city in 2011. The city filed suit against the prime contractor in 2013, and the contractor agreed to the $130,000 court settlement in January, Ferguson's report said.
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