On Dec. 15, 2014, the FBI and the U.S. Department of Justice each issued a press release that begins as follows:
“WASHINGTON – Forrester Construction Company has agreed to pay $2.15 million to the United States and implement internal reforms to resolve a criminal investigation into alleged fraud committed by the company in connection with the use of Certified Business Enterprises (CBEs) in the procurement of more than $145 million in District of Columbia government contracts. The internal reforms will be subject to independent review and reporting.”
As part of the resolution, Forrester Construction Company (Forrester) admitted that it improperly entered into written letter agreements and “Action of Management Committee” memoranda with the CBE participants to joint ventures that were not disclosed to the District of Columbia during the contract procurement process. As a result, the company admitted, both Forrester and the CBE partners failed to follow the required CBE rules and regulations.