On Tuesday, it was announced that a resident of Eighty-Four, Pennsylvania had been sentenced for conspiracy to defraud the United States. 78-year-old Donald R. Taylor was sentenced to three years of probation, a $30,000 fine and 300 hours of community service. The defendant pleaded guilty to the charge on October 30, 2017. The defendant admitted to being the owner of Century Steel Erectors Co.
He also confessed to conspiring with Watson L. Maloy Jr. to use Maloy’s company, W.M.C.C. Inc. as a “front” company to illegally obtain federally funded subcontracts on Pennsylvania Department of Transportation and Pennsylvania Turnpike Commission bridge projects. Taylor also admitted that the United States Department of Transportation through the Federal Highway Administration required PennDOT and the PTC to implement USDOT’s disadvantage business enterprise program.
The program is designed to promote participation from minority-owned small businesses in federally funded projects. Century Steel Erectors was not a certified disadvantage business enterprise. Therefore, Taylor and Maloy agreed that they would use WMCC as a way to obtain DBE-eligible bridge subcontracts. Nevertheless, Taylor admitted that CSE employees acting on his orders, identified, bid, negotiated and performed the work on the DBE-eligible subcontracts.
The defendant tried to conceal the action by allowing CSE employees to use a WMCC email account and phone line. Magnetic WMCC signs were used to cover up CSE logos on company vehicles. As a result of the scheme, Taylor admitted that WMCC and CSE fraudulently obtained nine PennDOT subcontracts from January of 2012 and February of 2014. Total payments to WMCC were roughly $1,065,000. Taylor confessed to paying Maloy a periodic “fee” ranging from $2,000 to $10,000.
Taylor has made full restitution in the amount of $85,221.21 to PennDOT. Maloy previously pleaded guilty to a single count of conspiracy to defraud the United States. He was sentenced to two years of probation and was ordered to pay a $1,000 fine. Additional details have been made available here.