U.S. Department of Transportation Federal Highway Administration	Notice Subject SUSPENSION FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code	Date	Office of Primary Interest
	N 2000.587	June 8, 2007	HIPA-30

1. What is the purpose of this Notice? 

   1. This Notice serves to advise that action has been taken by the Federal Highway Administration (FHWA) for the suspension of the individual named in paragraph 2a. This action is taken pursuant to Executive Order 12549, the U.S. Department of Transportation's (DOT’s) implementing regulations in 49 CFR Part 29, DOT Order 4200.5D, Governmentwide Debarment, Suspension, and Ineligibility, and FHWA Order 2000.2A, Nonprocurement Suspension and Debarment Process.

   2. In accordance with 49 CFR 29.110, this suspension is 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 individual cited below has been notified in writing of his suspension:

      John Ruggiero
      102 Nugent Street
      Staten Island, NY  10306

   2. This suspension became effective on March 14, 2007.

3. What is the scope of these actions?  The individual cited in paragraph 2a is 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 individual is 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 both procurement and nonprocurement transactions.  This suspension is effective throughout the Executive Branch of the Federal Government. 

4. What are the causes for these suspensions and proposed debarments?

   1. On April 7, 2006, indictments were filed in the United States District Court for the Eastern District of New York charging John Ruggiero and others with multiple counts including unlawful labor payments, mail fraud, and conspiracy to make unlawful labor payments, to launder money, to commit mail fraud, and to defraud the United States.  The indictment of John Ruggiero alleges that he participated in a scheme to benefit himself and his corporate employer, AFC Enterprises, Inc., by bribing union representatives and utility company representatives to issue inflated invoices to utility companies on area roadway construction projects. The indictment also alleges that John Ruggiero participated in a scheme to defraud the Minority Business Enterprise (MBE) program of the City of New York by using a fraudulent MBE contractor without allowing that minority business to perform a commercially useful function during the 1990s.

   2. Pursuant to 49 CFR Part 29, John Ruggiero has committed acts that are cause for suspension.  Specifically, the FHWA believes that John Ruggiero’s indictment constitutes adequate evidence for 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 individual cited in paragraph 2a from participating in Federal nonprocurement programs.  This suspension shall be for a temporary period imposed only for the duration of their criminal proceedings.

   4. This suspension has been taken in accordance with 49 CFR Part 29.

Related Sites:
FHWA Order 2000.2A
DOT Order 4200.5D
Executive Order 12549