January 2, 1996 Kiewit Construction Group Inc.
Several construction companies involved in federally-funded public works projects in the Seattle-Tacoma area have agreed to pay over $700,000 to settle allegations that they used sham minority contracting entities in order to qualify for programs for the socially and economically disadvantaged. The Federal Disadvantaged Business Enterprise Program requires that where federal construction funds are granted by federal agencies to local and state governments, minority and woman owned business enterprises should have an opportunity to receive a fair share of the federal funds in accord regulations approved by the federal agency.
The claims asserted against the construction companies, were that the defendants falsely represented that they were using female owned and minority owned companies to perform million of dollars worth of construction, when in fact, those companies were sham entities, or were genuine entities which did not actually perform the work.
See U.S. Dept of Justice Press Release 1/2/96