U.S. Department of Transportation Federal Highway Administration	Notice Subject
	SUSPENSION FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code	Date	OPI
	N 2000.498	May 9, 2002	HCC-30

1. What is the purpose of this Notice?



1. This Notice advises that actions have been taken by the Federal Highway Administration (FHWA) for the suspension of the individuals and companies named below in paragraph 2a. These actions are taken pursuant to Executive Order 12549, the U.S. Department of Transportation's (USDOT) implementing regulations in 49 CFR, Part 29, and FHWA Order 2000.2A, Nonprocurement Suspension and Debarment Process.



2. The suspensions are consistent with the Federal government's policy to use the discretionary action of suspension and 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. What actions have been taken and what is their scope?



1. The individuals and companies cited below have been sent written notice of the suspensions:

Francis Justin Buscher
163 Sullivan Ln.
Westbury, NY 11590

Kahnawake Mohawk Industries, Inc.
163 Sullivan Ln.
Westbury, NY 11590

Kanawke Mohawk Enterprises, Inc.
163 Sullivan Ln.
Westbury, NY 11590

Mohawk Enterprises, Inc.
163 Sullivan Ln.
Westbury, NY 11590

Kahnawake Industries, Inc.
163 Sullivan Ln.
Westbury, NY 11590

Vijay Havaldar
12 Calt Drive
Hazlet, NJ 07730

V.V.S.S. Co., Inc.
12 Calt Drive
Hazlet, NJ 07730

2. The suspensions are effective upon signature of this Notice by the Suspending Official.



3. Under the suspensions, the companies and individuals listed 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 companies and individuals 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 suspensions, and debarment, if enacted, shall have government-wide effect applying to all Federally-assisted programs and projects. Their scopes are defined in 49 CFR Part 29.



4. Additionally, the Department's regulations for suspensions and debarments allow "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 suspension action (49 CFR, Sections 29.325(a) and 29.420). Affiliates are determined by indicia of control, which includes interlocking management or ownership, shared interests among family members, shared facilities and equipment, common use of employees, or a business entity organized following the suspension or debarment having the same or similar management, ownership, or principal employees. 49 CFR, Section 29.105. For purposes of this action, Kanawke Mohawk Enterprises, Inc., Mohawk Enterprises, Inc., and Kahnawake Industries, Inc. are affiliates of Francis Justin Buscher and Kahnawake Mohawk Industries, Inc.



3. What are the causes for the suspension?



1. Francis Justin Buscher is the owner of Kahnawake-Mohawk Industries, Inc. (Mohawk). On or about October 5, 2001, Buscher pled guilty to "conspiracy to defraud the United States" in violation of 18 U.S.C. § 371, and on or about November 14, 2001, Mohawk pled guilty to "money laundering" in violation of 18 U.S.C. § 1956. Buscher is also the owner of Kanawke Mohawk Enterprises, Inc., Mohawk Enterprises, Inc., and Kahnawake Industries, Inc. All four of these companies have the same business address.



2. Vijay Havaldar is the owner of V.V.S.S. Co., Inc. On or about October 11, 2001, Havaldar pled guilty to "conspiracy to defraud the United States" in violation of 18. U.S.C. § 371, and V.V.S.S. pled guilty to "money laundering" in violation of 18 U.S.C. § 1956.



3. Also, the "informations" underlying these guilty pleas were filed on or about September 19, 2001 for Francis Justin Buscher and V.V.S.S. Co., October 11, 2001 for Vijay Havaldar, and November 14, 2001 for Kahnawake-Mohawk Industries, Inc.



4. According to their filed "informations" as well as the press releases related to their plea agreements, the above listed parties admitted that they acted as fronts for several general contractors. Specifically, Buscher and Havaldar admitted that they received five percent of the value of their subcontracts in return for fraudulently processing approximately 60 MBE/DBE subcontracts valued at over $40 million to give the appearance that they had actually performed the work under the contracts themselves. In addition, Buscher and Havaldar admitted that they prepared and submitted false certified payrolls and other documents to public contracting agencies, falsified books, records and tax returns of their companies, and submitted false documentation to various unions and union benefit funds in furtherance of this fraudulent scheme. Approximately 18 of the fraudulent subcontracts, which totaled $20 million, were processed for the one general contractor alone.



5. Pursuant to 49 C.F.R. Part 29, Francis Justin Buscher, Kahnawake-Mohawk Industries, Inc., Vijay Havaldar, and V.V.S.S. Co. have committed acts that are cause for suspension. Specifically, under 49 C.F.R. Section 29.405, the FHWA believes that the above listed guilty pleas and filed "informations" constitute adequate evidence for immediate suspension.



6. Due to the nature of this conduct and the FHWA's obligation to protect the public interest and to conduct business only with responsible persons, the FHWA finds it necessary to immediately suspend the parties listed in paragraph 2a from participating in Federal nonprocurement programs. The suspensions shall be for a temporary period imposed only for the duration of their criminal proceedings.



7. These administrative suspension actions are taken in accordance with 49 C.F.R. Part 29.

King W. Gee Suspending & Debarring Official

Related Sites:

Executive Order 12549
FHWA Order 2000.2A