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January 25th, 2010
02:32 PM ET

Break the law, break the bank?

Program Note: Don't miss Drew Griffin's full report tonight on AC360° at 10 p.m. ET.

Drew Griffin | BIO
CNN Investigative Correspondent

The federal stimulus program is funding roadway construction in many Massachusetts towns. But more than half of the companies that have received taxpayer dollars to perform the work have a history of breaking the law.

According to an investigation by Boston University's New England Center for Investigative Reporting, more than half the companies given stimulus contracts have histories of defrauding taxpayers.

Using funds from the $787 billion American Recovery and Reinvestment Act, the Massachusetts Highway Division has awarded nearly $54 million in contracts for highway improvements. One company, Aggregate Industries Northeast Inc., based in Saugus, Massachusetts, was awarded two stimulus contracts totaling $8.9 million for roadwork in the state.

Aggregate Industries is one of the largest producers of aggregate, asphalt and ready-mixed concrete in New England. But Aggregate Industries has a record of misconduct, and six of its former managers pleaded guilty or were convicted of defrauding the government.

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Filed under: Drew Griffin • Keeping Them Honest • Stimulus
soundoff (2 Responses)
  1. Sam

    So it really is buisness as usual. The big companies get bank rolled.While the little guy gets left out. I've heard all about money for new small businesses. Funny I can't find any of it. Banks won't loan money,and the grants r all hiding behind pay me websites.

    January 25, 2010 at 3:32 pm |
  2. James D

    Reminds me of a large construction company (WB) here who does a large amount of highway work, and 80% of their workforce is illegal...go figure

    January 25, 2010 at 2:39 pm |