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Capco indicted by feds

The federal government recently indicted the owner of Capco Contracting – the group involved… The federal government recently indicted the owner of Capco Contracting – the group involved with the construction of the Petersen Events Center – on charges of mail fraud, major fraud and conspiracy. Three others were also indicted.

Owner Thomas Cousar, along with managers Catherine Bradica and Daniel Monte, were charged with fraud and conspiracy during Capco Contracting’s job as subcontractor from 1999 to 2001 on two Pittsburgh projects.

The indictment outlined a fraudulent billing scheme, which included fabricated timesheets and over-billing for materials.

It stated that Cousar and Bradica submitted timesheets that reported excess hours and included names of employees who did not work at the particular site. Some of these names were employees at Tube City Cafe and Chaton’s Salon – both in McKeesport and owned by Cousar.

They also worked as subcontractors for AMEC Construction Management Inc., repairing the Pentagon. The indictment indicates that similar methods of fraudulent billing were used.

It also states that Cousar used materials meant for the Pentagon project in other Capco projects.

Capco Contracting, which is based in McKeesport, handled the construction of PNC Park and the rebuilding project of the Pentagon after the Sept. 11, 2001, terrorist attacks.

The amount lost is estimated at about $1 million, according to a press release from Mary Beth Buchanan, the western Pennsylvania district attorney.

According to a Jan. 7 Post-Gazette article, Pitt was not defrauded of money.

The frauds in the PNC Park and Petersen Events Center projects cost only the general contractors and not the taxpayer, according to the Post-Gazette. The Pentagon fraud, however, did come at the expense of the taxpayer.

In any construction project involving public monies, there is a limit to how much of the taxpayers’ money is available for use. Anything beyond that is usually billed to the general contractor.

Pitt spokesperson John Fedele said the University is not involved in the indictment and had no comment.

Pitt is currently in the midst of a lawsuit concerning the design and contracting of the Petersen Events Center with Apostolou Associates/Rosser International.

Pitt News Staff

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