US SETTLES DISPUTE OVER DISADVANTAGED BUSINESS FRAUD | USAO-SDIL

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FAIRVIEW HEIGHTS, Ill. – United Ironworkers (“United”), D&K Welding Services (“D&K”), Kim Rasnick and Dorrie Wise-Harris have agreed to pay the United States and the State of Illinois
$440,000 to resolve a civil investigation under the False Claims Act into underprivileged people fraud
United States and Illinois State Attorney’s Business Enterprise (“DBE”) Programs
Steven D. Weinhoeft announced it today. United and D&K are steel construction companies
operating on highway and bridge projects in Illinois and other Midwestern states.

The DBE program reflects Congress’s intention to combat discrimination against minorities and
women-owned businesses in federally funded surface transportation works. Under the DBE
regulations, only businesses independently owned and operated by a minority or a woman can be
DBE certified.

The government alleged that as a non-DBE, United and its chairman, Kim Rasnick, had conspired with
has DBE, D&K, and its president, Dorrie Wise-Harris, to provide material
misrepresentations and information regarding ownership and control of D&K for DBE certification
and for recertification purposes. These allegations were investigated by the U.S. Department
of the Office of the Inspector General of Transportation and resulted in this settlement.

“The DBE program is designed to provide business opportunities to minorities and women
companies. Funds earmarked for this purpose should not be misallocated to
companies posing as legitimate DBEs,” said U.S. Attorney Steven D. Weinhoeft.

Karl and Diana Jefferson, owners of a metal construction business in southern Illinois,
revealed the allegations. The Misrepresentation Act allows individuals to
sue on behalf of the government for misrepresentations and participate in any recovery. the
civil lawsuit was filed in the Southern District of Illinois and is subtitled United States and
Al.v. United Ironworkers, Inc., et al., 17-cv-1402. The Jeffersons will receive $79,200 from
settlement proceeds.

This case was handled by the U.S. Attorney’s Office for the Southern District of Illinois and the
Illinois Attorney General’s Office.

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