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Possible Fraud inside LAUSD construction contracts

by Patricia McAllister Tuesday, Jun. 14, 2005 at 2:39 PM P.O. Box 86562, Los Angeles, CA 90086

African Americans were to receive approximately million in construction contracts, based on a report issued by the Los Angeles Unified School District Small Business Program. These contracts were awarded, but not to African Americans.

Possible  Fraud insi...
school.jpg, image/jpeg, 1843x1225

Possible Fraud of LAUSD Construction Contracts

The Los Angeles Unified School District, Facilities Management Department published a report that African Americans were awarded approximately million in LAUSD construction contracts in their March, 2004 Small Business Program (SBE) year-end report. Based on the contracts that we received from the LAUSD, African Americans did not receive 1% of that amount.

There could be possible fraud at the LAUSD Facilities Management Department. African Americans have not received the SBE construction contracts that were earmarked for them. Instead, companies like Verizon, Pinner construction, and other multi-million dollar (non-SBE) firms have been receiving these contracts.

Also, based on our investigation, we have not found a system in place where prime contractors such as Verizon, and Pinner construction are awarding Black SBE firms their fair share of subcontracts.

February 2, 2005

Mr. Terry McConville

Director Litigation Research


333 South Beaudry Avenue, 20th Floor

Los Angeles, CA 90017

Dear Mr. McConville:

Based on a report that was issued by the Los Angeles Unified School District, Facilities Services Division, Small Business Program Year-End Report,

presented by Veronica Soto, Manager of Small Business Program, School Construction Bond Citizens' Oversight Committee, March 17, 2004 report, the

following figures were released regarding African Americans and Hispanic LAUSD construction contracts.

Prime Contracts

Afro-American/Black ,230,750.40

Hispanic ,171,253.99


Afro-American/Black ,644,998.00

Hispanic ,966,085.00

Based on the Freedom of Information Act (FOIA) that I submitted to you on November 3, 2004, I was given the following contracts for the above two racial

groups on a CD ROM, in the third week of December 2004. I have drawn a line through the vendors that are NOT SBEs. I cannot understand why these

firms received SBE allocated contracts, when they are not SBE certified firms.

Contract # Vendor Contract Name Amount Date

0410149 OJM/Barbon Ramona ,135,000.00 12/3/03

0410128 Nike Construction Co. Berendo Middle school 4,000.00 11/17/03

0410075 DJM.Barbon Ivanhoe-Ramoa/Selma Sch ,767,000.00 10/27/03

0410074 Pinner Construction Manual Arts Elementary ,069,000.00 9/22/03

0410071 Century Paving San Gabriel ES & Victoria 9,000.00 9/22/03

0410051 Cali USA Acoustics Various school groups ,485,867.90 12/3/03

(replacement of ceilings)

0410048 Cali USA Acoustics Replacement light fixtures ,315,536.00 9/30/03

0410028 Bernards Bros., Inc. New school facilities ,590,000.00 8/14/03

(East Valley, North Hollywd)

0410024 Verizon California, Inc. Safety & Technology ,760,626.79 10/6/03

0410012 Verizon California, Inc. Safety & Tech. (Adden 2) 9,718.14 9/9/03

0310602 Verizon California, Inc. Safety & Tech (Adden 1) ,628,589.50 10/28/03

0310597 West Coast Construction Hot & cold water lines 4,000.00 1/25/03

0310586 Verizon California, Inc. 96th st. elem school ,461,364.00 10/16/03

0310583 Verizon California, Inc. Delores Elem. School 0,668.00 6/11/03

0310577 DJM/Barbon Belvedere ,174,000.00 11/3/03

0310574 E.A. Mendoza Los Angeles, H.S.(concrete) 1,000.00 8/11/03

0310570 Verizon California, Inc. Audubon Middle School ,565,138.00 8/1/03

0310564 Verizon California, Inc. Ford & Marianna Elem sch ,946,505.00 11/4/03

0310559 DJM/Barbon Commonwealth/Hoover sch ,159,000.00 8/26/03

0310543 Verizon California, Inc. Western Ave elem school 5,081.33 9/29/03

0310526 E.A. Mendoza Cimarron H.S. (yard work) 4,100.00 9/16/03

0310525 DJM/Barbon Breed St. Elem., etc. ,564,000.00 7/3/03

0310516 Masco Electric, Inc. 42nd St. elem school 1,000.00 7/24/03

0310515 Pinner Construction Alexander Hamilton High ,961,882.00 4/1/03

0310513 Servon Brainard school paint job ,750.00 4/22/03

0310493 Khachik Toomians Electric Weemes Elem. School ,148,700.00 1/25/03

0310476 DJM/Barbon Olive Vista/El Dorado School ,115,000.00 4/1/03

0310468 H.A. Nichols 156th Elementary School 1,000.00 4/11/03

0310466 Datum Group, Inc. Roosevelt H.S. 0,000.00 4/11/03

0310465 American Integrated Services Harbor Occupational Ctr. ,350.00 3/13/03

0310447 Bernards Brothers, Inc. Arlington Hts., Elem school ,095,000.00 3/11/03

0310445 Kemp Brothers Construction LA Center for Enriched studies ,899,000.00 3/7/03

0310443 JJJ Floor Covernings, Inc. North Hollywood Adult sch. ,120.00 4/1/03

0310440 Toomians Electric Cimarron Elem. School ,297,000.00 7/3/03

0310435 Century Paving, Inc. Harbor City school 5,000.00 4/4/03

0310434 Lucas Brothers GlenFeliz Elem. School 1,940.00 4/11/03

0310428 A.E. Mendoza Leapwood Ave., Elem school 8,100.00 (no date/sig)

0310427 Toomians Electric Evergreen Elementary 1,700.00 3/27/03

0310422 Kemp Brothers Construction Huntington Park Elem #3 ,800,000.00 3/7/03

0310419 Torres Construction Co. Liberty Elem. School 8,000.00 5/7/03

0310417 Cali USA Acoustics, Inc. Various Schools Addem. 01 3,011.00 5/6/03

0310415 George C. Hopkins Construc. Aragon Elem. School ,670,000.00 3/3/03

0310410 Servon Roscoe ES ,750.00 2/13/03

0310409 Schwartz & Lindheim, Inc. Kamasaki Elem. School 4,385.00 3/27/03

0310404 Commercial Paving & Coating Sunland Elem. School 9,000.00 3/3/03

0310402 McCarthy Building Co., Inc. Miles/Pacoima Elem. School ,140,083.00 3/27/03

0310389 Sim J. Construction, Inc. Sylmar Elem. School ,274,000.00 3/11/03

0310379 S.J. Amoroso Construction Southeast area new H.S. #2 ,840,000.00 1/31/03

0310372 Lucas Brothers Various group, addem. 004 0,580.00 3/4/03

0310367 Lucas Brothers Various group addem. 004 5,103.00 2/13/03

0310360 Pinner Construction Fletcher Dr. Elem ,590,000.00 2/4/03

0310351 E.A. Mendoza Washington Prep. H.S. 8,100.00 1/7/03

0310349 S.J. Amoroso Construction S.E. Middle H.S. ,880,000.00 1/31/03

0310345 Leo's A-C Inc. Fremont H.S. 5,000.00 2/5/03

0310335 E.A. Mendoza Audubon Middle School 9,100.00 2/5/03

0310333 Century Paving, Inc. Graham & Manchester H.S. 7,821.00 6/9/03

0310329 McCarthy Building Co., Inc. 10th/Hillside/San Miguel H.S. ,700,083.00 6/10/03

0310315 Verizon California Inc. E.S. 1,844.23 8/20/03

0310313 Verizon California Inc. Gates 9th st. Kennedy ,825,958.33 7/3/03

0310305 Commercial Paving & Coating Mount Wash. Elem. School 1,219.00 6/4/03

0310304 Verizon California, Inc. Carnegie Middle school 9,702.26 9/9/03

0310303 E.A. Mendoza Carnegie Middle school 2,100.00 (no date)

0310291 Kemp Brothers Construction Southgate Elem. School ,680,000.00 5/5/03

0310282 Verizon California, Inc. 54th Street Elem school 2,032.88 9/23/03

0310277 Verizon California, Inc. Oxnard St. Elem school 4,674.65 6/13/03

0310266 Pasadena Construction & Int. Gridley Street school 6,038.00 4/25/03

0310265 A.E. Mendoza Dorris Place Elem. School 1,100.00 4/25/03

0310263 Contour Contractors Corp. Hart E.S. 9,325.00 5/29/03

0310261 Pasadena Construction & Int. Sharp Ave. Elem. School 5,565.00 6/13/03

0310259 Commercial Paving & Coating Selma Elem. School 8,200.00 6/4/03

0310256 Commercial Paving & Coating Huntington Dr. Elem. School 2,000.00 4/15/03

0310255 DJM/Barbon Figueroa & 109th st. Elem sch ,598,000.00 7/24/03

0310254 Pinner Construction Co., Inc. Stanford New Primary Center ,681,000.00 4/25/03

0310249 Amtek Construction Haddon E.S. & CC 2,705.00 5/29/03

0310247 Pinner Construction Co., Inc. 68th Street Elem. School ,343,000.00 5/5/03

0310223 Mackone Development, Inc. Ascot Elem. School ,560,000.00 2/13/03

0310219 A.E. Mendoza Fair E.S. 2,100.00 1/24/03

0310217 Leo's A-C Inc. University High School 0,000.00 3/3/03

0310213 Servon Toland Way Elem. School 4,650.00 2/13/03

0310201 Construction Concepts, Inc. 6th Avenue E.S. ,476,000.00 1/7/03

0310176 Lucas Brothers Arlington Heights, E.S. ,824.00 4/11/03

0310155 SCS Flooring Systems Ulysses Grant H.S. 0,000.00 6/9/03

0310151 Torres Construction Co. Various Groups 2692 8,000.00 1/9/03

0310147 Cali U.S.A. Acoustics, Inc. Various schools 6,888.90 11/20/02

0310144 Environmental Acoustics, Inc. Various schools ,590,193.90 11/20/02

0310142 Torres Construction Co. Sylmar High School 8,000.00 4/22/03

0310136 Construction Concepts Norwood St. Elem. School ,672,000.00 1/7/03

0310125 Martinez Landscape Construct. Nathaniel Narbonne H.S. 0,000.00 1/6/03

Please contact me to let me know when we can meet to discuss this matter, and how we might work together to rectify this situation by

compensating the Afro-Americans/Blacks for the contracts that they did not receive.


Patricia McAllister

Cc: Mr. Carey Paul Peck, Vendor Service Manager

Veronica Soto, Manager of Small Business Program

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