Assistant U.S. Attorney John J. Field, who is handling the
case, stated that the Rochester School Modernization Program (the Program) is a
public-works project to renovate and improve various school facilities in the
City of Rochester. The Program is overseen and directed by the Rochester Joint
Schools Construction Board (the Board). The enabling legislation for the
Program required that the Board implement a Diversity Plan for the benefit of
persons deemed to be traditionally underrepresented in the construction field,
specifically, minorities and women.
According to the complaint, the defendant Dixon, a minority
male, was president and owner of Journee Construction. Dixon allowed
contractors, who did not meet the requirements of the Diversity Plan, to use
Journee Construction as a pass-through agency on Program contracts in exchange
for a fee. For example:
· On March 19,
2013, the defendant met with Witness A and told Witness A that he created
Journee Construction to be used as a pass-through on certain jobs related to
the Program. Dixon noted that, a business, identified as Contractor 1, had
directed him to place Contractor 1’s employees on Journee’s payroll for this
purpose. In subsequent recorded conversations, the defendant told Witness A
that the scheme as an easy way to make money for just “pushing paper.”
· In April and
May 2013, Contractor 1 submitted a bid for work on the Program at School No. 5.
Paperwork was submitted falsely representing that Contractor 1 planned to
utilize Journee Construction as a Minority Business Enterprise subcontractor
and supplier for approximately $1,300,000 of services. Both Dixon and Contractor
1 signed the paperwork falsely representing that the defendant agreed and
intended to perform the described work. The defendant also falsely claimed to
be a certified Minority Business Enterprise (MBE), as required by the Diversity
Plan.
· In May 2013, a business, identified as
Contractor 2, submitted a bid for work on the Program at School No. 28. In
connection with that bid, paperwork was submitted falsely representing that
Contractor 2 planned to utilize Journee Construction as a Small Business
Enterprise (SBE) subcontractor for $160,000 in supplies. Both the defendant and
Contractor 2 signed the paperwork even though Dixon did not have the ability to
supply parts for Contractor 2’s requirements.
Dixon did not perform any of the work for Contractor 1 or
Contractor 2, nor did he perform any economically useful function as required
by the Program. Instead, the defendant simply lent his name to the transactions
and illegally served as a “pass through” entity.
The defendant made an initial appearance this morning before
U.S. Magistrate Judge Jonathan W. Feldman and was released. The complaint is
the result of an investigation by the Federal Bureau of Investigation; under
the direction of Special Agent-in-Charge Gary Loeffert.
