U.S. Department of Transportation Federal Highway Administration	Notice Subject Suspension From Federal Nonprocurement Programs
	Classification Code	Date	Office of Primary Interest
	N 2000.577	November 15, 2006	HIPA-30

1. What is the purpose of this Notice?

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

   2. In accordance with 49 CFR 29.110, these suspensions are consistent with the Federal Government's policy to use the discretionary action of suspension to conduct business only with responsible persons and to protect the public interest, the Federal Government, and the integrity of Federal programs.

2. What actions have been taken?

   1. The company and individual cited below have been notified in writing of their suspensions:

      American Painting Company, Inc.
      287 Park Drive
      Campbell, OH 44405-1259

      Anthony Katsourakis
      287 Park Drive
      Campbell, OH 44405-1259

   2. These suspensions became effective on June 8, 2006.

3. What is the scope of these actions? The company and individual cited in paragraph 2a are prohibited from being a participant or principal in any primary or lower tier covered transaction, as defined in 49 CFR Part 29, Subpart B. Generally, the company and individual are prohibited from submitting a proposal for, or entering into, a covered transaction, or participating in a covered transaction 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 the transaction, whether employed by a person who submits a proposal for, or enters into a covered transaction, including any procurement and nonprocurement transaction between an agency and a person. These suspensions are effective throughout the Executive Branch of the Federal Government.

4. What are the causes for these suspensions?

   1. On August 24, 2005, American Painting Company, Inc., and Anthony Katsourakis were indicted on one count of conspiracy to commit bribery and make false statements in violation of 18 U.S.C. 371, and Anthony Katsourakis was further indicted on 2 counts of bribery in violation of 18 U.S.C. 666(a)(2). According to the indictment, these parties engaged in a conspiracy to minimize expenses and maximize profit on certain Federally funded bridge painting contracts by offering and paying cash bribes and other compensation to the Ohio Department of Transportation (ODOT) inspectors assigned to those contracts in return for the inspectors allowing American Painting Company, Inc., to disregard contract specifications. The indictment further charges that Anthony Katsourakis gave $24,000 to one ODOT inspector and allowed another ODOT inspector to use his condominium in Clearwater, Florida, as bribes.

   2. Pursuant to 49 CFR Part 29, American Painting Company, Inc., and Anthony Katsourakis have committed acts that are cause for suspension. Specifically, the FHWA believes that their indictments constitute adequate evidence for a suspension.

   3. 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 above from participating in Federal nonprocurement programs. The suspensions shall be for a temporary period imposed only for the duration of American Painting Company, Inc.’s, and Anthony Katsourakis’s criminal proceedings.

   4. These suspensions have been taken in accordance with 49 CFR Part 29.

	King W. Gee Suspending Official

Related Sites:
FHWA Order 2000.2A
Executive Order 12549