FAIRVIEW HEIGHTS, Ill. - United Ironworkers (“United"), D&K Welding Services (“D&K"), Kim Rasnick, and Dorrie Wise-Harris have agreed to pay the United States and the State of Illinois
$440,000 to resolve a civil False Claims Act investigation relating to fraud on the Disadvantaged
Business Enterprise (“DBE") programs of the United States and the State of Illinois U.S. Attorney
Steven D. Weinhoeft announced today. United and D&K are steel construction companies
operating on highway and bridge projects in Illinois and other midwestern states.
The DBE program reflects Congress’s intent to combat discrimination against minority and
women-owned businesses on federally-assisted surface transportation work. Under the DBE
regulations, only businesses independently owned and operated by a minority or woman may be
certified as a DBE.
The government alleged that, as a non-DBE, United and its President, Kim Rasnick, conspired with
a DBE, D&K, and its President, Dorrie Wise-Harris, to provide materially
false representations and information regarding ownership and control of D&K for DBE certification
and recertification purposes. These allegations were investigated by the U.S. Department
of Transportation’s Office of Inspector General and culminated in this settlement.
“The DBE program is designed to provide business opportunities to minority and women owned
businesses. Funds designated for that purpose should not be misallocated to
businesses masquerading as legitimate DBEs," said United States Attorney Steven D. Weinhoeft.
Karl and Diana Jefferson, who own a steel construction firm in Southern Illinois,
brought the allegations to light. The False Claims Act permits private individuals to
sue on behalf of the government for false claims and to share in any recovery. The
civil lawsuit was filed in the Southern District of Illinois and is captioned United States et
al. v. United Ironworkers, Inc., et al., 17-cv-1402. The Jefferson’s will receive $79,200 from the
settlement proceeds.
This matter was handled by the U.S. Attorney’s Office for the Southern District of Illinois and the
Illinois Attorney General’s Office.
Source: U.S. Department of Justice, Office of the United States Attorneys
