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Taylor: Contractors Bilked Cuyahoga County Communities Out Of More Than $2.5 Million
Construction Companies Swindled Taxpayers of Solon, Valley View
Cuyahoga County - Auditor of State Mary Taylor today released the special audit investigations of the city of Solon and the village of Valley View, showing more than $2.5 million dollars in overpayments to three construction companies. The owners of the companies profited inappropriately by using a scheme that involved overbilling the communities for work performed and overcharging for inferior products.
“It is critical that public funds are protected and spent appropriately,” Taylor said. “Initial information provided to us by Solon’s Finance Director helped identify this issue and I am pleased that my office was able to investigate and document the extent of the misuse of taxpayer money in these two communities.”
Taylor’s investigation shows a total of $2,373,356 in overpayments to three construction companies in the city of Solon: Midwest Paving, Chaney Cement Contractors, Inc. and MGL Enterprises, Inc. These payments were a result of charging Solon more for the amount of concrete used in city projects and billing for a higher quality concrete than was actually used. The audit report also shows errors on the invoices that led to additional overbilling by each company.
The investigation of Solon led to a separate audit of the village of Valley View when it was learned that Chaney Cement Contractors, Inc. and MGL Enterprises, Inc. had multiple contracts with the Cuyahoga County village as well. This investigation identified $169,645 in overbilling as a result of similar practices.
Copies of the complete reports are available online for Solon and Valley View.
The Ohio Auditor of State’s office is a leader in the government accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.