Dive Brief:
- When a car dealer in Fort Worth, Texas, had a construction subcontractor come looking for $100,000, an investigation led to charges that construction manager Keith Alexander was billing for subs' work but paying them less or nothing on the claimed work.
- A jury sentenced a convicted Alexander to three years in prison and a fine of up to $10,000 for the 2006 scam.
- Prosecutors said there had been other instances and that Alexander's pattern was to declare bankruptcy when subcontractors sued for unpaid fees, avoid liability, and set up another company.
Dive Insight:
The Tarrant County district attorney, Joe Shannon, said his office was "tired of seeing the little guys left holding the bag" in such cases. His office used strong words in a press release about Alexander's case, saying the construction business is "fraught with fraud" that takes several forms.