U.S. Department of Transportation Federal Highway Administration	Notice Subject DEBARMENT FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code N 2000.490	Date April 18, 2000

1. PURPOSE
   1. This Notice advises that actions have been taken by the Federal Highway Administration (FHWA) for the debarment of the individuals and companies named in paragraph 2a. These actions are taken 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 (Federal-Aid Program), dated November 19, 1993.
      

   2. The debarments are consistent with the Federal Government's policy on using the discretionary action of debarment to conduct business only with responsible persons and to protect the public interest, the Federal Government, and the integrity of Federal programs (49 CFR Section 29.115).

2. ACTIONS TAKEN AND THEIR SCOPE
   1. The individuals and companies cited here have been given written notice of the debarments. The debarments are effective upon signature of this Notice by the Debarring Official and shall have the scope and effect detailed in paragraph 2b.

      Mr. Michael Lee Cone
      5102 W. Longfellow Ave.
      Tampa, Florida 33629

      Mr. Stephen D. Kasper
      8906 Bermuda Lane
      Port Richey, Florida 34668

      Mr. Robert Scott Riley, Jr.
      2928 Forest Circle
      Seffner, Florida 33584

      Cone Constructors, Inc. (CCI)
      6375 South Lois Ave.
      Tampa, Florida 33616

      Cone Constructors of Miami, Inc.
      6735 S. Lois Ave.
      Tampa, Florida 33616

      CP Ventures, Inc.
      6735 S. Lois Ave.
      Tampa, Florida 33616

      CK Ventures, L.C.
      6735 S. Lois Ave.
      Tampa, Florida 33616

      Signal Equipment Co., Inc.¹
      15437 N. Hwy. 301
      Dade City, Florida 33523

      CCI Aviation, Inc.
      6735 S. Lois Ave.
      Tampa, Florida 33616

      Polk Properties, Inc.
      6735 S. Lois Ave.
      Tampa, Florida 33616

   2. Under the debarments, the individuals and companies named in paragraph 2a are prohibited from being a participant or principal in any primary or lower tier "covered transaction," as defined in 49 CFR Sections 29.105 and 29.110. Generally, the individuals and companies are prohibited from submitting a proposal or entering, or participating as an officer, director, owner, partner, key employee, or other person with primary management or supervisory responsibilities, or one who has critical influence on or substantive control over any "covered transaction," whether employed by a person who submits a proposal for, or enters into a "covered transaction," including any nonprocurement transaction between an agency and a person. The debarments shall be effective throughout the entire Executive Branch of the Federal Government. The scope of a debarment is defined in 49 CFR Part 29.

   3. Federal regulation on debarment allows "affiliates" of participants -- i.e., those persons who have participated or are reasonably expected to participate in a nonprocurement transaction involving Federal assistance -- to be included in a debarment action (49 CFR Sections 29.325(a)). Affiliates are determined by indicia of control, which includes interlocking management or ownership, or shared interests among family members (49 CFR Section 29.105). Michael L. Cone, a party subject to this debarment under paragraph 2a, has been identified as the President of Cone Constructors of Miami; as the president and director of CP Ventures and Signal Equipment (formerly, Crawler Rail & Roller, Co.); and as the director of CCI Aviation and Polk Properties, Inc. Stephen Kasper, also a party subject to this debarment, has been identified as the president and vice-president of Cone Constructors of Miami. Another affiliated company, CK Ventures, L.C. operates from 6735 S. Lois Avenue, Tampa, Florida 33616, which is the location of Cone Constructors, Inc. and other affiliated companies, with the exception of Signal Equipment, which is located in Dade City, Florida.

3. CAUSE FOR DEBARMENT
   1. On or about July 29, 1999, a three-count indictment was filed against Michael L. Cone, Robert S. Riley, Jr., and Stephen D. Kasper in the Circuit Court of the Thirteenth Judicial Circuit in Hillsborough County, Florida. Count 1 of the indictment charged that the individuals engaged in money laundering, a second- degree felony and violation under sections of the Florida statutes. Count 2 charged the individuals with unlawful compensation or reward for official behavior, a third- degree felony and violation of the Florida statutes. In addition to the above-stated counts, Michael L. Cone, d/b/a/ Cone Constructors, Inc., was indicted in Count 3 for making a false official statement, a second-degree misdemeanor. Michael L. Cone, Stephen D. Kasper, and Robert S. Riley, Jr. entered pleas and were adjudicated guilty on all counts of the indictment. Pursuant to the plea agreements signed by the individuals and the settlement agreement entered into by Michael Cone and Cone Constructors, Inc., the parties are prohibited from contracting or seeking to contract, or acting as a material supplier, subcontractor, consultant, or employee on any Florida Department of Transportation (FDOT) contract or project. Additionally, Robert S. Riley, Jr. is prohibited from seeking or accepting employment with the State of Florida. Title 49 of the Code of Federal Regulations, Part 29 explicitly allows for debarment, based upon conviction or civil judgment (49 CFR, Section 29.305(a)).

   2. The Information, a charging document, alleged that the individuals named in paragraph 2a, and others known or unknown, conducted or attempted to conduct a financial transaction or transactions by purchasing real property in Levy County, knowing that the transaction or transactions were a sham designed in whole or in part to conceal or disguise the nature, location, source, ownership, or control of the proceeds, $133,777.50 from a loan in the name of Stephen Kasper, an act of unlawful compensation in violation of Sections 838.016 and 896.101 of the Florida Statutes. The Information charged that those individuals, and perhaps others, did corruptly give, offer, or promise to, Robert S. Riley, Jr., a public servant for the Florida Department of Transportation, approximately $133,777.50 in U.S. currency or its equivalent. It alleged that Robert S. Riley, Jr., in turn, corruptly requested, solicited, accepted, or agreed to accept the benefit or other benefits not authorized by law and who by virtue of his employment and position was in a position to exert influence and/or did exert such influence on behalf of Michael Cone, doing business as Cone Constructors, Inc., in violation of Section 838.016 of the Florida Statutes. The Information further charged that Michael L. Cone, d/b/a Cone Constructors, Inc., knowingly made a false statement in writing on a Certification Disbursement of Previous Periodic Payment to Subcontractors form, with the intent to mislead a public official at the Department of Transportation in the performance of official duty in violation of the Florida Statutes, Section 837.06.

   3. Florida Statute 337.11 (10) requires the prime contractor to pass along any funds due to the subcontractors before the next estimate of construction cut off date. As president of Cone Constructors, Inc., Michael L. Cone exercised complete authority over the operations of the company, including making decisions concerning the signing and release of payments to subcontractors and suppliers for work completed on FDOT contracts, and signing the required certification forms. Michael L. Cone routinely and intentionally failed to sign checks for payment to the subcontractors and suppliers, despite having received payment from FDOT for work completed by the subcontractors. Michael L. Cone knowingly signed and submitted certification of disbursement to subcontractors forms indicating that subcontractors had been paid when the subcontractors had not, including a certification of payment to Traffic Control Products, Inc., a subcontractor on the State Road 776 FDOT project. Funds received by Cone from FDOT were diverted to both personal and other business bank accounts belonging to Cone. The individuals and companies unlawfully obtained and retained money both directly and indirectly from the Federal Government and the State of Florida regarding road construction projects.

   4. Robert S. Riley, Jr. received unlawful compensation or reward for official behavior from Michael L. Cone and/or Cone Constructors, Inc. Riley intervened on Cone's behalf in several instances. Riley directed a project engineer to process paperwork to pay Michael Cone $63,781.26 for stockpiled stay-in-place metal deck forms. Not only were the metal deck forms not stockpiled, they had not been manufactured. Riley also directed a project engineer to pay Cone 50 percent of the total amount of a clearing and grubbing contract for only two days of work. The interventions made by Riley on Cone's behalf resulted in payments made to Cone to which Cone was not entitled. In another instance, Riley informed a complaining subcontractor that the reason for Cone's failure to make payment to the subcontractor was due to DOT computers being down for two weeks. The information provided to the subcontractor by Riley was false. Among the items constituting unlawful compensation or reward received by Riley from Cone/CCI were: a Ford Bronco valued in excess of $21,000, a parcel of property in Levy County for $12,000, and a house in Apollo Beach, Florida for $133,777.50. There were also allegations that Riley received cash, used an Ice Palace box during entertainment events, and spent time on a boat owned by Michael Cone.

   5. Debarments may be imposed in accordance with the provisions of 49 CFR Sections 29.300-314 where an individual or company has been convicted for the commission of fraud or a criminal offense; in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction; in the commission of falsification, making false statements, or making false claims; or in the commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a person. 49 CFR Section 29.305(a)(1)(3)(4).

   6. A debarment may also be imposed where an individual or company has failed to perform in accordance with the terms of one or more public agreements or transactions; where history indicates failure to perform or unsatisfactory performance; for the willful violation of statutory or regulatory provisions or requirements applicable to public agreements or transactions; or where the individual or company has acted in such a manner that is serious and compelling in nature that it affects the present responsibility of a person (49 CFR Section 29.305(b) and (d)).

   7. The Department's codification of governmentwide regulations on suspensions and debarments specifically provides that, in a debarment action based upon a conviction or civil judgment, the standard of proof is deemed to have been met (49 CFR Section 29.314(c)).

   8. The debarments shall be commensurate and concurrent with the plea agreements and settlement agreement of Cone Constructors, Inc. entered into on July 29, 1999 and shall be effective for a period of four (4) years, beginning July 29, 1999 through July 29, 2003.

   9. These debarments are taken in accordance with 49 CFR Part 29.

Vincent F. Schimmoller
Debarring Official

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¹Pursuant to a name change amendment filed with the Florida Department of State on September 16, 1999, the corporate name of Crawler Rail & Roller Co., Inc. was changed to Signal Equipment Co., Inc.