U.S. Department of Transportation
Federal Highway Administration

NOTICE

1. PURPOSE

   This Notice advises that action has been taken by the Federal Highway Administration (FHWA) to modify the suspension of the companies noted below from action taken by the FHWA pursuant to Executive Order 12549, the Department of Transportation's implementing regulations in 49 CFR Part 29, and FHWA Order 2000.2, Nonprocurement Suspension and Debarment Process.

   Palumbo Brothers, Inc.
   323 South Center Street
   Hillside, Illinois 60162

   Orange Crush Recycle L.P.
   323 South Center Street
   Hillside, Illinois 60162

   The latter-noted company was referred to as "Orange Crush Recycle Co., Inc." in predecessor FHWA Notices (N 2000.485, November 21, 1996 and N 2000.486, January 6, 1997).

2. ACTIONS TAKEN AND THEIR SCOPE

   1. The individuals and companies cited below were given written notice of suspensions by letters dated November 21, 1996. FHWA Notice N 2000.485, November 21, 1996. The suspension action was modified on January 6, 1997 to revise the time period of the suspension to remain in effect until termination of the criminal proceeding. FHWA Notice N 2000.486, January 6, 1997.

      Mr. Joseph L. Palumbo
      25 North Barrington Road
      South Barrington, Illinois 60010

      Mr. Peter A. Palumbo
      25 North Barrington Road
      South Barrington, Illinois 60010

      Mr. Sebastian Palumbo
      409 Fox Trail Lane
      Oak Brook, Illinois 60521

      Mr. Daniel Ferrarini
      4401 West Shamrock Lane, Apt. 2C
      McHenry, Illinois 60050

      Mr. Gerald McGreevy
      480 North Airlite
      Elgin, Illinois 60123

      Mr. Kelson Abdishi
      6956 300th Street
      Clearwater, Florida 34617

      Palumbo Brothers, Inc.
      323 South Center Street
      Hillside, Illinois 60162

      Orange Crush Recycle L.P.
      323 South Center Street
      Hillside, Illinois 60162

      Monarch Asphalt Company
      323 South Center Street
      Hillside, Illinois 60162

   2. The suspension action is based on the October 11, 1996 indictment charging the above-noted individuals and companies with violations of mail and wire fraud under 18 U.S.C. sections 1341 and 1343. Specifically, the individuals and companies named in the indictment were charged with multiple counts attached to an alleged racketeering scheme to unlawfully obtain and retain money and property from the Federal Government, the State of Illinois, and local municipalities regarding road construction projects. The alleged scheme consisted, in part, of submitting false and fraudulent documentation for work not done and material not used.

   3. The indictment did not implicate Orange Crush Recycle L.P.(Orange Crush) in any of the alleged illegal charges. However, the FHWA suspended the company as an "affiliate" because of its connection with parties charged under the indictment. 49 CFR sections 29.325(a)(2) and 29.420.

   4. The FHWA received a December 23, 1997 document from counsel for Palumbo Brothers, Inc., (PBI) and Orange Crush providing mitigation information about and requesting limited relief from the suspension. It is in full consideration of mitigating information that the FHWA has decided, solely for equitable reasons, to temporarily lift the suspension action against PBI and Orange Crush.

   5. This mitigation is provided only with the understanding and agreement that should PBI or any of the other indicted parties be convicted of all or part of the remaining charges against them in the upcoming litigation, the FHWA reserves the right to impose any appropriate debarment action.

   6. As requested in the December 23, 1997 letter, the FHWA is providing limited relief from the suspension by authorizing Orange Crush to supply construction materials to contractors and subcontractors in the State of Illinois, and PBI to lease equipment to contractors and subcontractors in the State of Illinois.

   7. This Notice is effective upon signature of the Notice by the Suspending Official and shall have the scope and effect detailed above.

Original Signed by:

Thomas J. Ptak
Associate Administrator
for Program Development

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