Three western New York construction contractors and two of the firms’ owners have agreed to pay more than $3 million to settle federal charges that they set up a “front” company that enabled them to improperly receive federal contracts designated for businesses controlled by disabled veterans, the Dept. of Justice says.
The parties to the settlement, which DOJ announced on Oct. 3, include defendants Zoladz Construction Co. Inc. (ZCCI), Arsenal Contracting LLC and Alliance Contracting LLC—all based in Alden, N.Y. ; along with John Zoladz of Darien, N.Y.—who owns 49% of Arsenal, 51% of Alliance and 100% of ZCCI—and David Lyons of Grand Island, N.Y., whom DOJ identifies as another part-owner of the companies.