Lancaster business fined max for scam to avoid minority contracting regulations

Local News

BUFFALO, N.Y. (WIVB) — A Lancaster-based construction company will have to pay a fine of $10,000 – the maximum – for scamming New York State to avoid minority contracting regulations.

A representative for Nichter Construction pleaded guilty in February to charges first brought forward in July 2018.

It admitted to hired a minority subcontractor to fulfill its hiring goal, but then passing the work, and the money, along to other non-minority businesses during a $350,000 construction project at the Buffalo Psychiatric Center. Thirteen percent of the work was to be doled out to a minority-owned business; in this case, Buffalo contractor McClendon Paving. 

Nichter instead hired other companies to perform plumbing and electrical work. The owner of McClendon Paving, William McClendon, admitted he was paid a fee by Nichter to use his identity.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss