TWO BIG DIG MANAGERS PLEAD GUILTY TO FALSE STATEMENTS SCHEME

BOSTON, MA - Two former managers of a major contractor on the Big Dig pled guilty today to a conspiracy to submit false bills on the I-93 tunnel finishes contract. The two men were convicted today in federal court of participating in a scheme involving the systematic, false billing of apprentice workers at the higher rate of pay for journeymen, resulting in continuing overpayments by the Central Artery/Tunnel project to the contractor.

United States Attorney Michael J. Sullivan, Theodore L. Doherty III, Special Agent in Charge of the Department of Transportation Inspector General’s Office in New England, Marjorie Franzman, Special Agent in Charge of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and Warren T. Bamford, Special Agent-in-Charge of the Federal Bureau of Investigation - Boston Field Division announced today that RYAN MCCOURT of Quincy, Massachusetts and KENNETH HARTLEY, of California, pled guilty before U.S. District Judge Joseph L. Tauro to a singlecount Information charging conspiracy to commit highway project fraud by making false statements regarding the cost of work performed on a federal highway project.

Both HARTLEY and MCCOURT were former managers of McCourt Construction Company, Inc. d/b/a McCourt/Obayashi Joint Venture (“McCourt Construction”). McCourt Construction previously pled guilty to conspiracy to defraud the United States with respect to claims on a federal highway project for the same over-billing scheme. The company’s sentencing is set for August 22, 2008.

At today’s plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have shown that MCCOURT and HARTLEY, along with McCourt Construction, engaged in a scheme of over-billing the Central Artery/Tunnel Project by falsely categorizing apprentice ironworkers, among other trades persons, as journeymen on work performed in the tunnel finishes contract. The work, which was overbilled, was performed on a time and materials basis, which meant the contractor, McCourt Contrruction, was paid for the time worked by each employee, as opposed to a fixed price for the work under contract. McCourt Construction was also paid 10% of its total time and materials billings to cover overhead, plus an additional 10% of that total for a profit margin.

Beginning in 2002 through December 2005, the managers of McCourt Construction’s Claims and Changes Department, which handled the preparation and submission of time and materials bills to the Central Artery/Tunnel Project, conspired to and participated in the overbilling scheme described above. From 2001 through June 2004, HARTLEY was McCourt Construction’s Claims and Changes manager. MCCOURT held that same position from about July 2004 through the end of the conspiracy.

Judge Tauro scheduled sentencing for October 1, 2008 at 2:15 p.m.. Each defendant faces up to five years imprisonment to be followed by three years of supervised release and a $250,000 fine.

The case was investigated by the Department of Transportation, Inspector General’s Office, the Department of Labor/Office of Labor Racketeering, and , the Federal Bureau of Investigation, New England Field Division. It is being prosecuted by Assistant U.S. Attorneys Eugenia M. Carris, Jeffrey M. Cohen, Anthony E. Fuller and Fred M. Wyshak, Jr. of Sullivan’s Public Corruption and Special Prosecutions Unit.