United States Department of Transportation - Federal Highway Administration FHWA HomeFeedback
DOT logo
U.S. Department
of Transportation
Federal Highway
Administration
 		Notice
black line
Subject
VOLUNTARY EXCLUSION FROM FEDERAL NONPROCUREMENT PROGRAMS

black line

Classification Code
N 2000.489 		Date
August 13, 1999

  1. PURPOSE

    1. This Notice serves to advise that the Federal Highway Administration (FHWA) has accepted and entered into Settlement and Voluntary Exclusion From Federal Nonprocurement Programs and Projects Agreements with the companies and individuals listed below in paragraph 4a.

    2. This Notice serves to effectuate the Federal Government's policy to conduct business only with responsible persons and to protect the public interest, the Federal Government, and the integrity of Federal programs.

  2. CANCELLATION

      This Notice supersedes and cancels FHWA Notice N 2000.485, Suspensions From Federal Nonprocurement Programs, dated November 21, 1996, and FHWA Notice N 2000.486, Amendment to Federal Highway Administration Notice N 2000.485, Suspensions From Federal Nonprocurement Programs (11/21/96), dated January 6, 1997.

  3. AUTHORITY

      This voluntary exclusion action is taken pursuant to the regulations of the U.S. Department of Transportation (49 CFR Part 29) and FHWA Order 2000.2, FHWA Nonprocurement Suspension and Debarment Process.

  4. ACTION TAKEN AND ITS SCOPE

    1. The companies and individuals cited below have been given written notice of the voluntary exclusion action by the Debarring Official, on the above captioned date. This Notice of Voluntary Exclusion From Federal Nonprocurement Programs is effective on that date. The voluntary exclusion shall be effective throughout the Executive Branch of the Federal Government, and shall have the scope outlined in paragraphs (b) - (f) below.

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

      Orange Crush Recycle Company, Inc.
      323 South Center Street
      Hillside, Illinois 60162

      Monarch Asphalt Company
      323 South Center Street
      Hillside, Illinois 60162

      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

      THE VOLUNTARY EXCLUSION IS PERMANENT

    2. Under the settlement and voluntary exclusion agreements, the companies cited above are permanently excluded (barred) from participating in any manner in the building or repairing of public highways, roads, and bridges pursuant to contracts, with, or funded in whole or part by, the Federal Highway Administration or other Federal Government entity. The individuals cited above are permanently excluded (barred) from serving as an officer, director, employee, or direct or indirect holder of greater than five percent of the shares of, or as a consultant to any business that is participating in any manner in the building or repairing of public highways, roads, and bridges pursuant to contracts, with, or funded in whole or part by, the Federal Highway Administration or other Federal Government entity.

    3. All existing and later-created affiliates (as defined by 49 CFR 29.105) of the companies and individuals listed above are excluded from participating in any capacity, including, but not limited to, participation as a contractor, subcontractor, material supplier or lessor or equipment, in connection with any contract let by the FHWA or funded in whole or in part with Federal funds.

    4. The Voluntary Exclusion is equally applicable to lower-tiered covered transactions pursuant to 49 CFR Part 29.

    5. The voluntary exclusion shall have the same force and effect and serve the same purpose as though the FHWA had issued a formal notice of debarment.

    6. The voluntary exclusion shall be effective throughout the entire Executive Branch of the Federal Government and shall also be recognized by and effective as a voluntary exclusion under the Federal Acquisition Regulations.

  5. CAUSE FOR VOLUNTARY EXCLUSION

    1. On or about October 11, 1996, an indictment was filed against the companies and individuals, with the exception of Orange Crush Recycle Company, Inc. (Orange Crush), in the United States District Court f or the Northern District of Illinois. The 37-count indictment charged violations of mail and wire fraud under 18 U.S.C. Sections 1341 and 1343 and bribery under sections of the Illinois code. Orange Crush was not a defendant in the United States Attorney's prosecution, but is affiliated with the corporate defendants and controlled by the individual Palumbos.

    2. As a result of entering into plea agreements, Palumbo Brothers, Inc. and Monarch Asphalt Company pled guilty to, admitted, and were convicted on January 8, 1999, in the United States District Court for the Northern District of Illinois, of engaging in a pattern of racketeering involving mail and wire fraud relating to highway construction projects. The plea agreements reflect a scheme to unlawfully obtain money and property both directly and indirectly from the Federal Government, the State of Illinois, and local municipalities.

    3. By virtue of separate plea agreements, the individuals named above pled guilty to, admitted, and were convicted (January 8, 1999) of filing false documents under the Employee Retirement Security Act ("ERISA"), which contained falsely understated hours worked by employees and of submitting reduced payments on behalf of the employees to union health and pension funds.

    4. The companies (and Orange Crush through affiliation) and individuals have committed acts that are sufficient cause for debarment under 49 CFR Part 29. The FHWA has determined that it is in the Government's best interest to settle the inevitable debarment actions against the companies and individuals named above by accepting their fully executed voluntary exclusion agreements.

    5. Each company and individual has waived the 30-day comment period and any further proceedings, hearings, or appeals to contest the terms of the Settlement and Voluntary Exclusion From Federal Nonprocurement Programs and Projects Agreements. 49 CFR 29.313.

    6. This voluntary exclusion action is taken in accordance with 49 CFR Part 29.
  Signature: Vincent F. Schimmoller
Vincent F. Schimmoller
Debarring Official

FHWA Home | Directives | Notices | Feedback
FHWA Logo
United States Department of Transportation - Federal Highway Administration