|
127.
Conspired to undermine Relator, contracting outside of the
joint venture.
128.
Bought piles from INTERNATIONAL.
129.
Purchased lumber from JB Lumber.
130.
Lumber was to be stamped clearly and legibly for inspection.
All lumber is to have a clear and
legible
stamp showing its grade and to have a separate stamp showing
its certified treatment. Neither
stamps
were present in violation of the contract documents. (Exhibit
3.) 31 U.S.C. 3729(a)(1)(4)(5)
131.
Invoice reflected higher grade. The lumber shipped had far
too many defects to be a true #1
grade,
such as splits, cracks, and large knots. This was a violation
of the contract documents.
(Exhibit
4.) 31 U.S.C. 3729(a)(1)(4)(5)
132.
ACCENT submitted invoices for pilings that were defective;
three broke in half. 31 U.S.C.
3729(a)(1)(2)(4)(5)
133.
Specification for pilings was originally for D9, an "
standard" according to Bob Wright. A lower
quality
of piling than used at Stearns Wharf or San Clemente Pier
was used. (Exhibit 5.) 31 U.S.C.
3729(a)(1)(2)(4)(5)
134.
The Permasheen paint that was used was substandard. 31 U.S.C.
3729(a)(1)(2)(4)(5)
135.
Plaintiff provided the proper specification and bid for Intecryl
paint, by International Co.,
specified
by Dunn-Edwards, approved by the DPR. ACCENT intentionally
used the inferior product
permasheen
household paint which is below industry standards as a marine
paint. 31 U.S.C.
3729(a)(1)(2)(4)(5)
136.
Inside and self dealing.
137.
D.V.B.E. (Disabled Veteran Business Enterprise) K D Home did
not receive a contract; SAF-
T Scaffold,
a company wholly owned by A.L. FEDERICO, preformed work originally
intended to
be done
by KB Home. 31 U.S.C. 3729(a)(1)
138.
Majority of the work was not done by listed subcontractors.
139.
Mail fraud.
140.
Intentionally slowed project.
141.
Failed to provide engineering calculations for the crane.
142.
Conspired not to sign joint venture agreement.
143.
A.L. FEDERICO and R.R. FEDERICO threatened, harassed, assaulted
plaintiff, and
committed
vandalism of plaintiff's property.
144.
False claims.
145.
Disassociated from the joint venture on October 28, 1999 by
filing a notice of disassociation
with
the CSLB, which statutorily eliminated them from having a
contractor's license during
construction
of the Malibu Pier project. 31 U.S.C. 3729(a)(1)
146.
Failure to inspect wrap. Defendants did not inspect the wrapping
in violation of the contract
documents.
(Exhibit 6.) 31 U.S.C. 3729(a)(1)
147.
ACCENT circumvented Joint Venture and terminated ACCENT from
the license, thereby
resulting
in having no lawful contract for the Project. 31 U.S.C. 3729(a)(1)
148.
Sent all subcontracts under ACCENT's name. On or about October
4,1999, defendants
mailed
contracts without the Relator's knowledge or approval and
contracted out of the "Person"
and contractor
of record.
149.
Back-dated scope of work letters. On or about March 10, 2000
defendants backdated and
mailed
to the subcontractors letters that were wholly fake and dated
the same date as the illegal and
unenforceable
contracts, committing mail fraud. 31 U.S.C. 3729(a)(2)
150.
Conspiracy to defraud. 31 U.S.C. 3729(a)(3)
151.
Bid-rigging. 31 U.S.C. 3729(a)(5)
152.
GUNITE was self-dealing with ACCENT. 31 U.S.C. 3729(a)(5)
153.
Failure to provide timely documents per the requirements of
the contract.
154.
False statements.
155.
Failure to test wrap. (Exhibit 12.) 31 U.S.C 3729(a)(2).
156.
Intentionally drafting convoluted and unconscionable joint
venture
agreement
as a trick and a scheme.
157.
Instructing employees to harass plaintiff and/or failing to
stop harassment by other workers
employed
by the Federicos.
158.
Intentionally stalling the contract approval process by submitting
Workers' Compensation
insurance
in ACCENT'S name only.
159.
Intentionally stalled the procurement of materials, i.e. tie
rods and pilings, by cancelling orders
placed
in advance.
160.
Intentionally stalled signing subcontracts, waited until after
pre-construction meeting, then signed
subcontracts
in ACCENT'S name only.
161.
Attempted to prevent Relator from attending the first of two
pre-construction meetings with
DPR to
further the scheme of defrauding the government through the
plan to assume control of the
Project
and wrongfully submit claims for payments to which they were
not entitled.
162.
At the pre-construction meeting on or about September 14,
1999, R.R. FEDERICO, says we
will
"start the job whenever we feel like it" confirming
that the tactic was to delay the start of the
Project
in order pressure the State and Relator into acquiescing to
their plan to wrest control of the
Project
and further the scheme of defrauding the government of funds
and perpetrating environmental
crimes
upon the United States and its citizens.
163.
Conspired with all the subcontractors to insure no profit
to the joint venture by rigging bids and
providing
more money to the subcontractors than what was originally
negotiated. 31 U.S.C.
3729(a)(1)(3)(5)
164.
Intentionally disregarded the requirement for safey fencing
under the pier. 31 U.S.C.
3729(a)(1)(2).
165.
R.R. FEDERICO violated his restraining orders on February
10, 2000.
166.
Permanent injunction issued against A.L. FEDERICO.
167.
Permanent injunction issued against R.R. FEDERICO.
168.
ACCENT, directed a RICO enterprise.
169.
Self-dealing, no approval from contractor.
170.
Disallowed plan to mobilize a barge crane to efficently drive
remaining 55 piles in two weeks'
time.
31 U.S.C. 3729(a)(1)
171.
Intentionally used paint specified as inadequate by Dunn Edwards.
31 U.S.C. 3729(a)(1)(5)
172.
Intentionally disregarding personal safety equipment, eye
protection, respirators for cutting
lead-based
paint, creosote and ACZA. 31 U.S.C. 3729(a)(1)
173.
Performed pile cutoffs with no netting, causing oil film on
ocean surface. 31 U.S.C. 3729(a)(1)
174.
Intentionally overloaded food prep deck with lumber. 31 U.S.C.
3729(a)(1)
175.
Intentionally allowed new deck to be damaged, scarred and
stained.
176.
Allowed contaminants to escape into the ocean. 31 U.S.C. 3729(a)(1)
177.
Improper removal of hazardous lead paint on handrail. Defendants
ACCENT and GUNITE
violated
the contract documents by improperly removig hazardous lead
paint without certification to
do so.
This job was intended for subcontractor Vector Three Environmental,
which backed out of
the job
when faced with the option of signing a subcontract with ACCENT
only, instead of the joint
venture.
178.
Removed relator's tools from the storage bin.
179.
No records for dumping hazardous materials were kept as required
in the contract documents.
31 U.S.C.
3729(a)(1)
180.
Disposed of waste into ocean. Defendants violated the contract
by willfully allowing creosote
wood
cuttings, diesel oil, jasco oil and other pollutants to leak
into the ocean with a "reckless
disregard"
of the pollution they were causing. 31 U.S.C. 3729(a)(1)
181.
Stalled as long as possible to respond to State's equests.
Defendants would take a minimum of
two weeks
to respond to any requests from the State engineers for information.
182.
Accent did not receive permission from the State to switch
subcontracting companies. This
included
instances where ACCENT and GUNITE performed work meant for
other subcontractors.
31 U.S.C.
3729(a)(1).
183.
Only one subcontractor is to be listed per trade.ACCENT and
GUNITE self-dealt an
extensive
portion of the work by allowing GUNITE to perform work that
was to be designated to
other
subcontractors regardless of whether GUNITE was competent
to perform said work.
ACCENT
and GUNITE then conspired with each other to concealed the
records as to what
company
was performing a particular type of work in order that the
self dealing would not be
exposed.
31 U.S.C. 3729(a)(1)(2)(5)
184.
ACCENT and GUNITE had no intention of pile driving, even though
GUNITE was listed as
the pile
driver. GUNITE also offered no bid for pile driving. 31 U.S.C.
3729(a)(1)
185.
KD Home, a DVBE contractor, was listed to paint the handrail
at $17,000. The handrail was
painted
by workmen from ACCENT and GUNITE, well in excess of that
amount, with only half of
the linear
footage completed using a 3 inch paint roller. 31 U.S.C. 3729(a)(1)(4)(5)
186.
KD Home was to do the bent cap removal for $5,700. GUNITE
performed bent cap removal
with
claims made in excess of $20,000. 31 U.S.C. 3729(a)(1)(4)(5)
187.
KD Home supplied a much lower price to the contractor to remove
stringers at $11,000 labor.
GUNITE
performed this work for more than $50,000. 31 U.S.C. 3729(a)(1)(4)(5)
188.
No public reason to remove KD Home was given as is required
under statute. 31 U.S.C.
3729(a)(1)
189.
Vector Three Environmental was listed to remove the handrail
for $3,150. ACCENT/
GUNITE
performed this work illegally because they are not certified
in California for removal of
hazardous
materials. ACCENT/GUNITE then charged a price far greater
than $3,150 and only
accomplished
half the work. 31 U.S.C. 3729(a)(1)(5).
190.
GUNITE had no intention of removing lead paint in a lawful
manner. 31 U.S.C. 3729(a)(1).
191.
Relator made tapes and transcripts available to DPR, showing
GUNITE was removing lead
paint
in an unlawful manner.
192.
ACCENT and GUNITE created a sham bid with GUNITE for all the
work that GUNITE
provided.
193.
ACCENT contracted out of Joint Venture with the subcontractors.
Most of the work was
eventually
not performed by those subcontractors, but by other companies
affiliated with or owned
by GUNITE
31 U.S.C. 3729(a)(1)(5)
194.
ACCENT and GUNITE "strong-armed" work from Vector
Three Environmental and KD
Home.
195.
Vector Three Environmental had been to several meetings on
the pier with Relator.
196.
GUNITE and ACCENT created false writings and statements to
the SHERIFF's Department
on May
2, 2000.
197.
A.L. FEDERICO had a reckless disregard for the truth and conspired
with the DPR, DGS and
DA to
have Relator arrested on grounds of vandalism, when he was
in fact carrying out his
responsibility
as contractor to identify patent defects in materials. Identification
of such defects
threatened
to expose the corrupt dealings of the subcontractors and government
officials on the
Project.
198.
ACCENT had disassociated from the Joint Venture on October
28, 1999, which removed
them
from the license and caused them to not be the contractor
of record. 31 U.S.C. 3729(a)(1)(5)
199.
DCA was never approved by the State to be a "replacement"
pile driver for GUNITE 31
U.S.C.
3729(a)(1)(5)
200.
ARROW did not have a contract with the Joint Venture. 31 U.S.C.
3729(a)(1)(5)
201.
BOOKOUT did not have a contract with the Joint Venture. 31
U.S.C. 3729(a)(1)(5)
202.
HALCO did not have a contract with the Joint Venture. 31 U.S.C.
3729(a)(1)(5)
203.
KD Home was removed 5½ months after bid opening.
204.
Vector Three Environment was removed 5 ½ months after
bid opening.
205.
DGS, and DPR conspired to allow the substitution of GUNITE
for KD Home and Vector
Three
Environmental. 31 U.S.C. 3729(a)(1)(5)
206.
ACCENT, to gain more control, forced the listed subcontractors
off the Project.
207.
ACCENT did not advertise in the trade papers for a DVBE under
the contractor's name.
208.
GUNITE is associated with or has common ownership of defendant
ACCENT. 31 U.S.C.
3729(a)(5)
209.
ACCENT and GUNITE intentionally stalled the Project by not
ordering required materials.
210.
ACCENT held back on purchasing more pilings needed for the
job.
211.
ACCENT held back buying more bent caps purportedly needed
for the job.
212.
ACCENT stalled in responding to requests for prices.
213.
ACCENT did not perform with due diligence.
214.
ACCENT did not maintain a sufficient workforce.
215.
ACCENT and GUNITE stated to DPR and DGS that Relator was to
have no authority on the
project.
216.
Originally cited as 20% behind schedule, the project ultimately
became 150% behind schedule.
217.
ACCENT and GUNITE colluded with AIG to seize all control of
the project.
218.
ACCENT colluded with DPR to stop the DPR's interpleader action
and have receiver pay all
false
claims. 31 U.S.C. 3729(a)(1)(3)(5)
219.
ACCENT and GUNITE's objective was to work as long as possible
and be paid in the end.
220.
Tentative subcontractors and the DPR were notified by certified
mail on October 9, 1999, that
contracts
were required and had to be signed jointly by the contractor
(Darian/Accent) for them the
be valid.
221.
R.R. FEDERICO said that "it is strictly our business,"
in reference to ACCENT contracting
outside
of Joint Venture. 31 U.S.C. 3729(a)(3)
222.
All the subcontractors were given notice on numerous occasions
that they were out of contract
and did
not have enforceable contracts. 31 U.S.C. 3729(a)(1)(5)
223.
ACCENT sent out false contracts which reflected that they
were the sole contractor for the
entire
Project. 31 U.S.C. 3729(a)(1)
224.
ACCENT used "extras" to stall the Project.
225.
Change orders were not approved or signed. 31 U.S.C. 3729(a)(1)(5)
226.
Submittal process was 75 days past due and work was started
120 days late.
227.
The Project had been planned by Relator with the ability to
have all materials available long
before
the Project started to insure productivity.
228.
Hunt Woodman said GUNITE and ACCENT regularly "finagle"
their payroll. This payroll was
later
submitted to the State to be paid with money partially derived
from federal funds. 31 U.S.C.
3729(a)(3)
229.
R.R. FEDERICO was a bogus self-appointed manager.
230.
On February 1, 2000, ACCENT back-dated false documents to
the CSLB.
231.
Statutorily, ninety-six days after their disassociation, ACCENT
could not file a Notice to
Recind
and be reinstated on the contracting license. 31 U.S.C. 3729(a)(1)(5)
232.
GUNITE. ACCENT ,its corporate vice president Rob Vonarb, and
corporate secretaries
knowingly
falsified the payroll by not disclosing who was signing for
the payroll period, paying
workman
twice for the same day, paying some workman below prevailing
wage, and several other
workers
4 times the prevailing wage rate. 31 U.S.C. 3729(a)(1)(2)(5)
233.
The falsified payroll reflects 18 Saturdays worked through
the duration of 30 weeks, which is
well
over half of the Saturdays. This is a false record of work
that was never preformed because in
actuality,
the workers only worked approximately 4 Saturdays in a 30
week period. The remaining
approximately
14 Saturdays reflected on the payroll were falsified. Additionally,
it was a requirement
of the
contract to obtain permission from the State Inspector before
working on any Saturday to
insure
the inspector could keep track of the work. This permission
was not obtained. 31 U.S.C.
3729(a)(2)(5)
234.
GUNITE. men knowingly submitted false time cards for payment
of work never preformed
causing
false claims to be paid under 3730 (3). GUNITE. workers: a)
Huntington Woodman; check
numbers
41754, 41874, 43398, 44139: b) Jose Lucio Matinez; check numbers
41702, 41820; c)
Perry
Gordon; check number 41680, 41928; d) Frank Garcia; check
numbers 41670, 41790; e)
Robert
Lomberto; check numbers 41598, 44061; f) Roger Valencia; check
numbers 41749,
41997;
g) Nick William Frontuto; check numbers unknown; h) Irlandro
Orellana Gonzalez; check
number
41939; i) Antonio Valdivia Guerrero; check number 41995; j)
Umberto Rodriguez Jr.;
check
number 43729; k) Ramino Favela; check numbers unknown; l)
Jorge Gonzales; check
numbers
unknown. 31 U.S.C. 3729(a)(1)(2)(5).
235.
ACCENT men knowingly submitted false time cards for payment
of work never preformed
causing
false claims to be paid under 3730 (3). a) Pedro Gonzales;
check numbers 19754, 19890,
20201,
20264; b) Raul V. Martinez; check numbers 19903, 20209, 20275;
c) Michael Mariscal;
check
numbers 19902, 20365, 20769, 20935; d) Tom La Londe; check
numbers 20489, 20658,
20766,
20933, 21020, 21250, 21296 31 U.S.C. 3729(a)(1)(2)(5).
236.
GUNITE's vice president , Rob Vonarb, knowingly presented
false certification when he
certified
under penalty of perjury that the payroll from the period
of November 1999 thru June 2000
was in
conformance with the contract's requirements to pay prevailing
wages when it was not. 31
U.S.C.
3729(a)(1)(2)(5)
237.
Rob Vonarb is a vice president of GUNITE yet he is neither
a responsible managing officer, or
a responsible
managing employee of GUNITE and does not have authority to
sign for the
corporation,
payroll certifications, or sign contracts. 31 U.S.C. 3729(a)(1)(2)(5)
238.
R.R. FEDERICO was appointed V.P. of ACCENT as the RMO of the
"A" classification and
V.P.
of GUNITE , not as an RMO. He was issued his own license at
the same time in November of
1996
only 2 ½ years before signing the Project contract.
However, R.R. FEDERICO is not the
qualifier
of any license that he works under, and thus, cannot be a
Responsible Managing Officer.
A.L.
FEDERICO is the qualifier of all of the licenses, thus R.R.
FEDERICO cannot have any
binding
authority. 31 U.S.C. 3729(a)(1)(2)(5)
239.
ACCENT charged the government $0.50 for 3" malleable
washers which were to be used on
the pier
at 2,400 pieces for a total of $1,200.00. The real washers
used were 2" cut washers costing
$0.17,
overcharging the government $780.00 and providing a below
industry standard, marine
hardware.
240.
ACCENT and GUNITE overcharged the government over 4,000 feet
of 3"x14" stringers at a
cost
of $6.702 per foot, for a total cost of $26,808 dollars. This
replacement of material
photographed
to be in perfect condition and clearly not in need of replacement.
31 U.S.C.
3729(a)(1)(2)
241.
ACCENT and GUNITE overcharged the government $21,841.95 for
bent to stringer
attachments
from bent 7 to bent 22. The contract documents stated that
all hardware shall be
included
in the unit price of the particular type of work. Relator
photographed the "drift pins" that are
standard
hardware for pier construction on both the Stearns Wharf and
San Clemente Piers before
construction
ever commenced. The Malibu pier also has drift pins which
are protected from the
elements
by being driven through holes bored through the center of
the stringer and is industry
standard
hardware. ACCENT and GUNITE provided below industry standard
hardware on the
Project.
31 U.S.C. 3729(a)(1)(2)
242.
ACCENT used substandard paint when they used a residential
paint and not marine
commercial
paint. DPR officials acknowledged Relator's submittal of International
Coatings product
Intercryl
primer and paint before construction commenced and stamped
"approved" the product that
is distributed
by Dunn Edwards Paint Inc. Additionally, the EZ prime used
by ACCENT and
GUNITE
is not compatible with the galvanized hardware and State officials
were aware of this. This
substandard
material used will cause a premature failure and cost the
government approximately
$25,000.00
for repainting the handrail and is considered below industry
standard. 31 U.S.C.
3729(a)(1).
243.
ACCENT caused a substandard application by not properly sanding
and preparing the wood,
using
a moisture meter to check the content of moisture before application
of primer, and did not
have
the coats of paint inspected between applications which are
all requirements of the contract. 31
U.S.C.
3729(a)(1).
244.
ACCENT and GUNITE did not use the product "Koppers"
for the application of coating the
tops
of the pilings after cutting which was the product submitted
by the Relator in the submittals and
approved
by the DPR. The use of the inferior Henry's emulsion does
not have the same properties
and costs
half as much. 31 U.S.C. 3729(a)(1)(2)(5)
245.
ACCENT and GUNITE conspired with State officials in charging
$16.00 a linear foot to
remove
214 feet of hand railing, for a total of $3,424.00. Vector
Three environmental ,a licensed
hazardous
removal contractor, provided a price to Relator for $3,150.00
to remove and haul away
1020
linear feet from bent 6 to bent 34 on both sides of the pier
for a price of 3.08 per ft. The
$16.00
per linear foot charged by ACCENT and GUNITE caused the price
to be "swollen" by
$2,764.88
and overcharged the government. 31 U.S.C. 3729(a)(1)(3)(5).
246.
In February, 2000, Mark Hoffman fraudulently signed that he
was the secretary of GUNITE.
He did
so by signing, under penalty of perjury, a stop notice for
"gunite related" services. Hoffman is
not listed
as an officer of GUNITE and he knowingly falsely described
the work provided on the
project,
with full knowledge that there were no GUNITE related services.
Mark Hoffman could not
misconstrue
his representations as he is a licensed attorney and is knowledgeable
of GUNITE's
activities.
He was fully aware that there was no GUNITE work on the pier.
Hoffman also knew that
there
was no valid contract for the Project and that GUNITE was
a sham subcontractor. 31 U.S.C.
3729(a)(3).
247.
GUNITE never provided a certificate of insurance for workers
compensation or liability
insurance
naming DARIAN/ACCENT as an additional insured, and did not
provide a certificate to
the DPR.
248.
ACCENT did not have insurance in the name provided to the
DPR , which meant that there
was no
insurance provided to the project or the workman, as required
under the contract. 31 U.S.C.
3729(a)(1)
249.
GUNITE did not have a direct contract with the general contractor,
nor did it send a certified
mandatory
20 day preliminary notice showing they were a legitimate subcontractor.
Therefore it
could
not file a valid Stop Notice pursuant to Civil Code §
3098 & 3183. 31 U.S.C. 3729(a)(5).
250.
A.L. FEDERICO and R.R. FEDERICO were acting in their official
capacities as agents for
ACCENT.
A.L. FEDERICO is the de facto head of ACCENT. In doing the
thing alleged herein
they
were acting within their individual and official capacities.
251.
ACCENT/GUNITE submitted invoices to be paid reflecting a higher
grade lumber than was
actually
used. ACCENT/GUNITE, through the Federico's, rigged a contract
with JB Lumber for a
falsified
lumber grade certification which was in excess of $16,000.00
higher than the prices Relator
obtained
from Wright and Associates. The lumber shipped was not #1
grade and it did not have
clear
legible stamps showing the grade as required under the contract.
JB Lumber's price to
GUNITE
was "swollen" to allow for a kick back to GUNITE.
A.L. FEDERICO and R.R.
FEDERICO
conspired with JB Lumber to change the invoices once Relator
had received one of the
receipts
showing the bill to GUNITE. This November 8, 1999 invoice
to GUNITE coincides with
Rob Vonarb's
statement to Ian Gavine at approximately 8:00a.m. November
1, 1999 "We are
taking
over this project."
252.
ACCENT/GUNITE submitted invoices for "pilings" that
were defective. ACCENT through its
vice
president R.R. FEDERICO submitted invoices to the government
knowing the piles to be
substandard,
in collusion with DPR officials, ED FYFE, CARR, and GUNITE.
253.
A.L. FEDERICO and GAVINE. GAVINE notified STEPHENS that the
materials for the piles
and the
wrap were defective and "somebody is paying for all this."
GAVINE confirmed that the piles
and wrap
were defective in January, 2000.
254.
ACCENT stalled the approval process and was beginning to repudiate
the contract as early as
July
1999 by submitting Workers Compensation Insurance in ACCENT'S
name only. Once Relator
discovered
this in a conversation with Defendant STEPHENS, on or about
July 28, 1999, Relator
obtained
an insurance policy for the Joint Venture from State Fund.
HOFFMAN, counsel for
GUNITE,
told Relator that the ownership of ACCENT was 100 percent
in the Federico Family
Trust.
This information was needed to obtain the policy from State
Fund. However, Relator obtained
the insurance
for the Joint Venture because A.L. FEDERICO told Relator incorrectly,
that he could
not get
a policy because "...you're company [Darian Construction]
is f----d up and I can't get a
policy
with your company!" Relator has an unblemished safety
record without ever having a worker
file
a claim or having any work related injuries. A.L. FEDERICO
statement was meant to circumvent
the Relator
as being a joint venturer and would allow A.L. FEDERICO to
"cook the books" by
paying
fake payroll.
255.
GUNITE performed bent cap removal with claims in excess of
$20,000. A.L. FEDERICO
and R.R.
FEDERICO, ACCENT /GUNITE and PATRICK/DCA all conspired with
government
agents
to remove and then replace bent caps at almost $2,800.00 each
when in fact, the bent caps
were
not in need of replacement. This collusion was meant to allow
more payment to the contractors
because
they unilaterally disregarded the contract specifications
by removing all bent caps before
driving.
This unacceptable way of building the pier caused an intentional
waste of government money.
Government
agents knowing that the caps were being removed fraudulently,
allowed for
unauthorized
change orders to replace the beams, the additional cost of
the replacement, and then
allowed
false time extensions in order to replace the beams when there
was no difference in the time
required
to put a new one back on or replace it with the existing beam.
By so doing, the government
agents
would then receive a kick back for making Reverse False Claims
on the government and
falsely
showing that the project was not as far behind schedule. By
covering up the fact that the
Project
was behind schedule, the government agents, GAVINE, CARVER,
PETTWAY,
STEPHENS,
TODD, La FRANCHI, AND DEMERY, could receive another kickback
by avoiding
the payment
of the required liquidated damages to compensate the government
for it's losses. This
was a
material part of the contract and accepted by the contractor
upon signing the documents. The
government
agents were well aware that Federico and the other licensed
contractors were partaking
in a
work slow down. DEMERY, supervisor for the DGS, was receiving
$500.00 a day for
inspection
costs in a subcontract with the DPR.
256.
ACCENT backdated false documents to the CSLB. HOFFMAN, corporate
secretary for
GUNITE,
wrote a letter requesting that the CSLB rescind the bogus
disassociation letter dated
January
24, 2000. The letter addressed to BARNETT, Registrar of the
CSLB, was signed by R.R.
FEDERICO
and dated on February 18, 2000. This sham letter was meant
to collaborate the
previous
letters dated February 1 and February 2 to ALBERTI. These
letters, both sent on February
1, 2000
despite the fact that the dates were manipulated, were meant
to rescind a January 24, 2000
notice
to the contractors board. This January 24,2000, disassociation
notice was sham in that it was
actually
sent to the board at 3:30 p.m. on February 1, 2000, after
receiving in the mail a letter sent
from
the board acknowledging ACCENT's removal from the license
#763080 as of October 28,
1999.
ACCENT received it the same time as Relator it was sent from
Sacramento and reached
Lake
View Terrace and Malibu on the same delivery day's mail. The
CSLB was without jurisdiction
to reverse
a disassociation notice by ACCENT from the license or to add
the company back on the
license
as 96 days had passed as of February 1, 2000. After 90 days,
the CSLB is without
jurisdiction
to make changes. By disassociating from the Joint Venture
on October 28, 1999, 3 days
after
the official start date of the Project, they removed themselves
from the license that was under
contract
with the State of California. On January 20, 2000 Relator
and Darian Construction Co.
made
an application with CSLB to continue the license for the balance
of the license period until
May 14,
2002. The license would have been cancelled had Relator not
made timely application
before
January 28, 2000 to continue the license. The CSLB would be
without jurisdiction to
continue
the license 90 days after ACCENT's Notice of Disassociation
if Relator did not file for a
continuance.
Barring the filing of an application by Relator for a continuance
of the license, the license
would
have been null and void. R.R. FEDERICO told Relator on December
13, 1999 that "A
month
and a half ago the lawyers did it [filed a Notice of Disassociation]"
which directly coincides
with
the October 28, 1999 disassociation date. This date of October
28, 1999 shows the Notice of
January
24, 2000 was backdated and sham. The CSLB ,in accepting the
backdated sham notice,
was in
collusion with ACCENT and R.R. FEDERICO in that they knew
the statutory time had
passed
and that they were without jurisdiction to reverse the notice
filed by the law firm of Allen,
Matkins,
Leck, Gimble, & Lee, by lawyer David Zaro, who stated
in a letter of November 1, 1999
that
ACCENT had disassociated from the license. The officials from
the contractors board knew
they
were powerless to include ACCENT on license # 763080 without
changing the dates of
disassociation
to create a sham disassociation of January 24, 2000, 89 days
after the October 28,
1999
notice , and then create a sham clause in the subsequent notice
that would provide for a
reversal.
The CSLB could not refute the original notice of October 28,
1999 in that a January 20,
2000
license query print out from the CSLB showed ACCENT's disassociation
from license #
763080
on October 28, 1999 and its subsequent letter to Relator dated
January 25, 2000 and
received
on February 1, 2000, confirmed ACCENT'S disassociation. On
February 2, 2000, TODD
wrote
a letter on behalf of the DPR stating "it is in the best
interest of the public to finish the project in
a timely
manner." This letter was written on behalf of ACCENT,
AIG/NATIONAL UNION and
DPR to
insinuate that it was in the best interest of the project
to allow ACCENT to reinstate on the
license
even though CSLB was without jurisdiction or authority to
do so. Additionally R.R.
FEDERICO
and the other contractors were creating an intentional work
slow down and
modification
of the project to controvert the massive wrongdoing of government
officials and private
contractors
all working without legal authorization or contract.
257.
The claims submitted to the U.S. Government. All of the claims
were submitted directly to the
DPR or
through David Pasternak , his paralegals and law firm. Pasternak
is sitting President of the
Los Angeles
County Bar Association. The private contractors knowingly
submitting false claims to
the government
agents who in turn approved those claims knowing them to be
false, and made
reverse
false claims on the governments funds to receive a kick back
from the government
contractors.
The private contractors conspired with Pasternak and his law
firm to submit and have
approved,
sham invoices that were not legible. The L.A. County Court
knew that Pasternak was the
president
of the Los Angeles County Bar Association and that the court
had appointed him without
lawful
reason. The L.A. County Court had to continue the corrupt
receivership of expending funds
for the
benefit of government agents who were approving the payments
with knowledge that the
invoices
were sham, swollen, and that labor and materials being paid
for were never provided, so
that
the they could prevent the disclosure to the public of the
corruption involved in the Project. The
government
agents needed Pasternak's corrupt receivership to expend the
funds without lawful
reason
and without findings of the court or a jury. The government
officials conspired with Pasternak
to have
the false claims paid with the knowledge that there was a
false claims suit against the
government
agents and the private contractors. The conspiracy was to
show that there has been no
damage
to the U. S. Treasury. This was done because if the State
government agents could disprove
an injury
to the U.S. Treasury then presumably, the federal court would
be without jurisdiction to
decide
a False Claims Act qui tam action brought to the U.S. Government.
This is tantamount to
saying
"we're the dealer holding all the cards, and if we chose
to cheat everybody with phoney cards,
we can
because we're the house." This would result in having
no ability to take action against those
who commit
willful fraud on the government. The U.S. Treasury has a direct
and indirect function in
its control
of funds sent to the State, and used to reimburse the State,
that will trigger liability under
the act.
One of the ways liability can be triggered is if the property
on which a project is constructed
is owned
by the United States. The Malibu Pier is affixed to, and occupies
United States waters and
the shoreline,
a property of the United States government. No other lower
government has
jurisdiction
or control. The U.S. is the supreme owner and dictates all
control over United States
waters.
This control has been designated to the following Federally
funded agencies: 1. Army Corps
of Engineers;
2. U.S. Coast Guard; 3. U.S. Fisheries; 4. U.S. National Parks.
The Army Corps of
Engineers
issued the permit to allow construction in and over U.S. property
and the Pacific Ocean.
The creosote
pilings that are driven into United States property were to
be driven with the condition
that
the environment was protected at all times, which included
the (a) sand (b) soil (c) water(d)
shoreline
(e) marine life. The government agents, in collusion with
private contractors, knowingly
failed
to comply with the U.S. Government's permitting requirements.
All of the pilings are currently,
and will
continue to for years into the future, secreting cancer causing
coal tar based creosote oil.
This
secretion is directly contaminating the ocean floor. In addition,
the chemical will percolate to the
surface
and affect marine life because it is a highly toxic substance.
The studies that will need to be
conducted
to assess the damage, the loss of marine life and damage to
the ecosystem, in addition to
the remedial
costs to solve the problem, will cost the U.S. Treasury an
immeasurable loss. This loss
is a
direct result of the State government agent's willful disregard
of the known requirement to protect
the soil
and water.
258.
Intentional false submissions. R.R. FEDERICO, vice president
and purported controlling officer
of ACCENT,
told Steve Bookout. foreman for BOOKOUT, by the bait shop
and lifeguard office
near
the end of the pier, on December 5, 1999, at approximately
10 a.m. " Do not talk to him
[Relator]
at all." At 10:30 a.m. that same day, 30 minutes after
talking to Bookout, R.R.
FEDERICO
told Relator, while standing between the food prep building
and the block wall that was
caved
in by the crane, "Go away. Go do a roof somewhere. If
you die tomorrow I would not care."
R.R.
FEDERICO conspired with BOOKOUT by demanding the cooperation
of other
subcontractors
in excluding Relator from taking part in the project. However,
at the same time, R.R.
FREDERICO
was putting on a front that the Project was a joint venture
by signing all letters to the
State
"Darian Construction Co./ Accent Builders, a Joint Venture."
All submissions of letters with
that
signature were a lie and were not copied to Relator.
259.
ACCENT'S letter to AREIAS, TODD, and GAVINE dated July 1,
2000 re: Force Account.
260.
Portland Bolt Manufacturing invoice to ACCENT dated October
15, 1999, total $1,756.40.
261.
Portland Bolt Manufacturing co. inc. invoice dated February
2, 2000, to ACCENT total
$309.00.
262.
ACCENT'S check to Hunt Woodman dated December 10, 1999, total
$124.16 ck. #10955.
263.
Western Equipment invoice to ACCENT dated April 21, 2000,
$8,027.06.
264.
Western Equipment invoice to ACCENT dated April 21, 2000,
total $1,051.76.
265.
Portland Bolt invoice to ACCENT dated April 14, 2000, total
$312.27.
266.
Invoice dated February 14, 2000, #107682 to ACCENT total $326.23.
267.
Orco Construction Supply Invoice to ACCENT dated January 20,
2000, total $388.71.
268.
Orco Construction Supply Co. invoice dated October 18, 1999,
total $2,668.10.
269.
Orco Construction Supply Co. invoice dated October 14, 1999,
total $709.82.
270.
FAX letter dated December 27, 1999, to DPR from ACCENT.
271.
Letter from DGS dated January 13, 2000, to Darian and the
Federicos by GAVINE.
272.
Letter faxed to CSLB, ALBERTI sent on February 1, 2000, re:
ACCENT'S disassociation by
R.R.
FEDERICO request for continuance by ACCENT.
273.
Letter to DPR from ACCENT dated November 10, 1999, by R.R.
FEDERICO.
274.
Letter to DPR from ACCENT dated February 2, 2000, by R.R.
FEDERICO faxed on
February
1, 2000.
275.
CSLB change of address from ACCENT to CSLB dated September
16, 1999, by Linda Fox.
276.
ACCENT cost breakdown dated March 1, 2000, for December 1999.
277.
ACCENT letter to DPR dated November 11, 1999, Re: Vector 3
Environmental relief of
Subcontract
(A) R.R. FEDERICO fraudulently represented that the plans
and specs were never
available
to Don Hollenbeck and that the scope of work varies from that
described by Relator.
Hollenbecks's
son was at Relator's contractor meeting on the pier in September
1999, R.R.
FEDERICO
did not attend the meeting. Hollenbeck also attended the meeting
that R.R.
FEDERICO
held. Federico's letter does not come for almost a month later
after the meeting
Hollenbeck
had attended. R.R. FEDERICO and ATKINSON knew the letter was
a sham because
Hollenbeck
was ready and willing to do the work. (C) the speakers were
R.R. FEDERICO,
ATKINSON
and Don Hollenbeck (D) Hollenbeck sent letters to Relator
and R.R. FEDERICO
pulling
out of the job and ATKINSON received notice from Federico.
(E) Relator received a call
from
Hollenbeck on October 13, 1999 after he attended R.R. FEDERICO's
contractor meeting.
Hollenbeck
told Relator that "I was working with you Bruce."
Hollenbeck stated that Federico was
trying
to take the job and he wasn't going to sign his contract.
278.
Accent letter to DPR dated January 28, 2000, Re: DPR letter
January 13, 2000.
279.
Letter from David Pasternak to John Hunter and Michael Smith
dated August 4, 2000, re:
payment.
(A) David Pasternak fraudulently represented that an objection
from either party would be
considered,
and that he was abiding by settled receivership ethical practice.
Despite this
representation,
Pasternak also stated that should there be any objection,
he would make an ex parte
application
to the court to have the payments approved anyway, making
any force and effect of an
objection
moot. Both FIBRWRAP and INTERNATIONAL did not have valid stop
notices .
FIBRWRAP
and BOOKOUT are licensed contractors, who worked with a reckless
disregard
without
valid contracts in conspiracy with ACCENT and GUNITE . Pasternak
stated in a letter to
Relator
and John Logan Hunter that unless either party objects to
the pay requests, he would make
the payments
without further court order. This letter was a fraudulent
misrepresentation because
Pasternak
knew that the letter was only directed to Relator and on June
30, 200, in Pasternak's
office,
Relator had already told Pasternak that the payments would
not be approved. All of
Pasternak's
correspondence references Accent Builder's v. Darian Construction
Co. etc., never
mentioning
the name of the estate to which he is receiver, which is Darian
Construction Co./Accent
Builders,
A Joint Venture. Pasternak's intention by naming the case
title instead of the company to
which
he is receiver is to strengthen ACCENTt's position that they
were the sole controlling party of
the Project.
In reality, ACCENT was "in a fog" and incapable
of contracting and understanding the
Project.
Pasternak bias was evident in his slanting everything to ACCENT'S
advantage . "I propose
to make
the following payments from this receivership estate as soon
as funds are available without
further
court order, unless either party submits a written objection
to such proposed payment for my
receipt
within five days from the date of this letter and serves a
copy thereof on the other party's
counsel
and files a copy with the Court." This was clearly meant
to impede any objection to the
proposed
payments figuring mailing would offer less than 2 days to
respond . Pasternak then advised
that
"Upon receipt of any such objection, I will make an ex
parte application to the Court for an
order
authorizing me to make the requested payments." These
fraudulent representation clearly show
that
he was not going to investigate the validity or veracity of
any objections. Clearly demonstrating a
reckless
disregard of the California Legislature's intention to protect
the public's funds by not
allowing
payment to contractors and material men of unlawful business
activity regardless of whether
the work
of materials were provided . This seemingly harsh law is designed
to protect the public's
funds,
not to protect the contractor's and material suppliers who
are not following the law.
Pasternak's
receivership actions were out side of settled practices showing
a strong inference of
collusion
with the contractors and taking it out of his receivership
capacity. Pasternak is also aware
that
a request for a court order only comes from a noticed motion
filed with an attached
Memorandum
of Points and Authorities. Pasternak fraudulently represented
that the ex parte
application
was "an emergency situation that would cause irreparable
damage to the parties unless
otherwise
heard immediately. Pasternak was also attempting to avoid
a record of the findings of the
court,
as ex parte applications are rarely stenographically recorded.
Pasternak also failed to file any
authorities
in support of, or site any law, providing for the payments.
(B) Pasternak knew the
representations
were false when made and on information and belief was in
conspiracy with the
others
to make the illegal payments. (C) the speakers to the letter
are David J. Pasternak, Dick Reed
, Ron
Gregory (FIBRWRAP's lawyer) INTERNATIONAL, David Veis (AIG
and NATIONAL
UNION
Lawyer) R.R. FEDERICO and Relator. (D) the statements were
made on August 4, 2000
at Pasternak,
Pasternak, and Patton's office (E) the manner in which the
statements are misleading
are that
they show a reckless disregard for investigating any impropriety,
reckless disregard for
considering
any opposition on an unbiased basis, and demonstrate a willful
and deliberate
misconduct
by seeking payments with all of documentation missing or deliberately
concealed. On
information
and belief, Pasternak was in conspiracy with the State agents
who were also covering up
material
documents such as payroll and contracts. Dick Reed's claim
of $400.00 for work done in
Sacramento
for the Joint Venture with the CSLB, did not require a contract
and was accepted by
Relator.
280.
Letter from Dear & Kelly dated December 28, 1999 to Bruce
Darian (A) The representations
were
fraudulently made by ACCENT stating that "Your continued
insistence upon injecting the State
into
the disputes between Darian Construction Co. and ACCENT concerning
the operation of the
joint
venture on this project has now reached critical proportions."
In reality, ACCENT and its
officers,
through there counsel, had disassociated from the joint venture
with the CSLB board, was
operating
outside of the contract, and was in breach of the contract
. (B) ACCENT knew the
representation
to be false when made and concealed the disassociation with
the CSLB. (C) the
speaker
to this letter was John Logan Hunter (D) the statements were
made on December 28, 1999
in Pasadena,
CA. (E) ACCENT's representations were false and misleading
because it was
ACCENT
and GUNITE that were working to breach the contract, contending
there was a joint
venture
when there was not, withholding all mail addressed equally
to Relator and thereby
committing
mail fraud by not delivering such mail, writing letters on
behalf of the joint venture and
willfully
keeping the contents of such letter from Relator, signing
payroll only in it's own company
name
and then withholding payroll records for inspection, recklessly
overpaying unskilled workman
as much
as ten times their prevailing wage rate and then not making
the pay record available for
inspection
, subletting much of the work to themselves, withholding invoices
of material purportedly
bought
from the joint venture for the job with the prices padded
and then switched back and forth
between
their two companies.
281.
Letter from Dear & Kelly to TODD dated December 27, 1999,
(A) the fraudulent
representation
from ACCENT was"On behalf of the joint venture for this
project, Mr. Ron Federico
has responded
to your December 15, 1999 letter." On December 14, 1999,
R.R. FEDERICO told
Relator
at the Malibu Pier that "all contracts are signed with
ACCENT only and are with the bonding
company
and we have disassociated from you , the lawyers did it a
month and a half ago. And in 90
days,
we will file for a continuance on the license and you will
be gone." Surely he could not be
answering
on behalf of the joint venture . "Accordingly , Mr. Federico
as the responsible managing
officer
for the joint venture has authority to respond to the State's
demand as an agent for the joint
venture."
1. R.R. FEDERICO cannot be ACCENT's RMO because he cannot
be, and was not, a
qualifier
of any contractors license. A.L. FEDERICO is the qualifier
of R.R. FEDERICO's individual
license
issued to him in November 1996. That same week, he was put
on ACCENT license under
the "A"
classification, the same as his individual license that A.L.
FEDERICO signed for as the
qualifier.
Since R.R. FEDERICO was not qualified to take the CSLB test
in the Law and Trade to
qualify
for his own license, he could not, a mere one week later,
qualify to take the required test of
Law and
Trade to be on ACCENT's license. The public has been injured
by R.R. FEDERICO
acting
as a RMO for which he is neither licensed, qualified or taken
the test for which to be licensed.
R.R.
FEDERICO signed the contracts in lieu of John Chappell, and
not in the presence of Relator
who had
signed them and left them for John Chappell to sign. R.R.
FEDERICO altered his title on
one of
the contracts, the contract for the Environmental Design and
Development department, which
is the
engineers contract. All of the other contracts do not reflect
RMO next to R.R. FEDERICO's
signature
. On information and belief R.R. FEDERICO was able to retrieve
the contract that was
designated
to the engineering department and modify his signature, as
no other signature of the other
6 contracts
reflect R.R. FEDERICO as the RMO including the designated
contractor's contract that
has no
such title. In any event, R.R. FEDERICO had never possessed
a license and was added on
under
A.L. FEDERICO only 2 ½ years before and for the previous
year John Chappell was
working
as the ostensible RMO of ACCENT. By comparison, Relator was
licensed in 1982 as an
owner
and qualifier of a general contractor's license and licensed
in 1989 as an owner and qualifier
of a
Roofing classification. Both A and B licenses are equal as
General Contractors and are equally
licensed
to contract with all other classifications of contractors.
General Building and General
Engineering
contractors are not limited in subcontracting with any other
classification. Any contention
that
ACCENT possessed the proper license and Relator did not is
without merit. The "B"
classification
license was appropriate for the Project as it is a general
contractor's license and is
qualified
to subcontract with all classifications and the wooden pier,
including the 5 structures on the
pier,
is in itself a major carpentry project.
282.
ACCENT letter to DPR dated September 17, 1999 Re: Progress
Schedule. (A) R.R.
FEDERICO
fraudulently represented that "As you will note all of
our submittals were in your office
in two
packages of 8/24/99 and 9/3/99." In reality, most of
the submittals were already submitted by
Relator.
R.R. FEDERICO had nothing to do with the submittals already
sent to DPR, or the
remaining
submittals. Relator showed them to ACCENT and thereafter,
R.R. FEDERICO left to
San Diego
for 3 weeks while the submittals stayed locked in his office.
Neither A.L. FEDERICO,
nor Rob
Vonarb would allow the door to be opened to retrieve the balance
of the submittals to be
sent
on time. GUNITE was holding the submittal, with knowledge
that they were generated and
being
sent to DPR by Relator, in an effort to delay the Project
. "We would like now to formally
request
10 copies of project documents." R.R. FEDERICO had not
been in charge of anything
regarding
the pier project and DPR knew this. R.R. FEDERICO was now
asking DPR for the
project
manuals which the contractors already had, and sought to contract
as ACCENT only. R.R.
FEDERICO's
acts in stalling the submittals and the contracts was designed
to delay as long as
possible
then do a "take over" of the Project with GUNITE.
Both Federicos knew
R.R.FREDERICO
was going to change all of the contracts and self deal with
GUNITE. "We were
accused
in the precon meeting of delaying the project." A.L.
FEDERICO and R.R. FEDERICO
delayed
the project for 6 months from bid state to start and R.R.
FEDERICO told every person at
the meeting,
which included 25 people at the Michael Landon Center, "I
will start this job whenever I
feel
like it, there is nothing in the specs that say when."
Most people in the room were appalled at
R.R.
FEDERICO's self imposed authority and bad faith conduct. R.R.
FEDERICO's and A.L.
FEDERICO'S
acts constituted deliberate misconduct by willfully stalling
every aspect it could on the
Project.
On September 14, 1999, R.R. FREDERICO obtained the engineer's
designated contract.
subsequently,
R.R. FEDERICO stopped returning daily phone calls from Relator
and would not
respond
to the letters of September 29,1999 and October 2, 1999. When
R.R. FEDERICO did
respond
to the letters he stated "You will come to realize that
this is not a partnership, and you are
nothing
more than a supervisory employee of Accent Builders, nothing
else." (B) R.R. FEDERICO
knew
his representations were false when he made them. (C) The
speaker to the letter was R.R.
FEDERICO
and STEPHENS. (D) the statements were made on September 17,
1999 from
ACCENT
in Lakeview Terrace to Sacramento DPR. (E) Both project engineer
STEPHENS and
R.R.
FEDERICO knew that R.R. FEDERICO had nothing to do with preparation
formulating the
bid ,
negotiating contracts and dealing with the State, county,
and city officials.
283.
Notes to Todd Pollack at Gemini Forest Products from Bruce
Darian.
284.
National construction Rentals inc. bid form to Bruce Darian
dated September 23, 1999
Temp
Power.
285.
National Construction Rentals inc. Bid Form dated September
23, 1999, Storage Container.
286.
National Construction Co. bid form dated September 23, 1999
to Bruce Darian,
Chain
Link Fence.
287.
CSLB license to Darian Construction Co./Accent Builders ,
a Joint Venture issued
May 14,
1999.
288.
CSLB change of address dated September 16, 1999, signed by
Linda Fox.
289.
Application for Joint Venture License signed by John Chappell
and Bruce Darian.
290.
Performance Bond notarized by Linda Fox for Bruce Darian and
Darian Construction Co.
dated
July 1, 1999.
291.
Letter from Michael C. Smith to John L. Hunter dated March
20, 2000.
292.
Order Re: Appointment of a Receiver case # SC061016 filed
June 5, 2000.
293.
David Pasternak oath of receiver filed in Riverside County
dated June 14, 2000.
294.
Letter to David Pasternak from Frank Molloy.
295.
Letter from Allen, Matkins, Leck, Gamble and Mallory - David
R. Zaro to Bruce Darian dated
November1,
1999 re: Disassociation of ACCENT.
296.
Letter to DPR from ACCENT regarding February 3, 2000 letter
dated February 3, 2000.
297.
Hot Sheet - Heavy & Highway dated May 12, 1999.
298.
WEBE Press proof of publication for DVBE contractor for ACCENT
dated May 4, 1999.
299.
Purchase Order faxed to Wright & Associates on September
14, 1999 by ACCENT.
GUNITE
300.
GUNITE did not posses a valid specialty D60 pressure foundation
and pile driving license for
pile
driving. GUNITE'S General Engineering license does not qualify
for pile driving as a
subcontractor.
To eliminate any question that GUNITE is aware of the need
for speciality licenses,
they
do posses a D06 concrete related services and a C53 swimming
pool specialty license. Not
possessing
the required license bars any recovery, and any money paid
is recoverable. 31 U.S.C.
3729(a)(1)(2)(5)
301.
GUNITE did not have a valid contract with the contractor of
record. On October 10, 1999
Relator
informed GUNITE. by certified mail that they did not have
a valid contract with the Joint
Venture
who was the contractor of record. Despite the fact that GUNITE
had been notified by
Relator
that they had no valid contract, they presented invoices to
be paid. Specifically, invoices in
the amount
of $156,000.00. GUNITE submitted the specified invoices to
ACCENT with full
knowledge
that ACCENT would in turn submit those tainted invoices to
the State for payment as
evidenced
by GUNITE.'s stop notices sent to the DPR on or about March
2000.
302.
GUNITE - GUNITE extra work order dated January 21, 2000 signed
by H. Woodman.
303.
GUNITE labor & material form dated November 30, 1999 signed
by H. Woodman.
304.
GUNITE Labor & Material Form dated December 2, 1999 signed
H. Woodman December
2, 1999.
305.
Superior Gunite Labor & Material Form dated December 3,
1999 signed H. Woodman.
306.
GUNITE Labor & Material Form dated December 7, 1999 signed
H. Woodman December
7, 1999.
307.
Change Order Darian/Accent dated December 7, 1999 signed by
GAVINE December 7,
1999.
308.
Fax dated February 1, 2000 from GUNITE to CSLB of January
25, 2000 granting
continuance.
309.
J.B. Lumber invoice # 23840 dated November 8, 1999 to GUNITE.
310.
David Pasternak notice of Motion Authorizing Receiver to pay
Estimate and to pay GUNITE
and DCA
dated December 5, 2000.
311.
Letter from GUNITE to Bruce Darian dated May 2, 2000 regarding
May 1, 2000 letter to
GUNITE.
312.
Letter from GUNITE to Bruce Darian dated April 25, 2000 signed
by Rob A. Vonarb
regarding
cease of pile driving.
313.
Letter from GUNITE to Bruce Darian Re: Mike Mariscal dated
April 25, 2000 by Rob A.
Vonarb.
314.
Letter from GUNITE to Darian Construction dated April 28,
2000 Re: GUNITE Harassment
signed
by Rob A. Vonarb.
DCA
315.
DCA did not provide proper engineering. Defendant DCA used
a hydraulic boom all-terrain
crane
not made for pile driving. A far larger crane was used to
compensate for a hydraulic crane's
weak
lifting to weight ratio capability. This overloaded the pier
and caused an unsafe condition. 31
U.S.C.
3729(a)(1)
316.
No valid contract. Defendants DCA did not have a valid written
contract with the contractor of
record.
On or about December 1999, Relator informed DCA by certified
letter that they did not
have
a valid contract with the Joint Venture who was the contractor
of record. Despite the fact that
DCA had
been notified by Relator that they had no valid contract,
they presented invoices to be
paid.
Specifically, Payment Voucher pay estimate #1 for DCA dated
December 1, 1999 in the
amount
of $6,866.54; Payment Voucher pay estimate #2 for DCA dated
January 1, 2000 for
$15,519.14;
Payment Voucher pay estimate #3 for DCA dated February 1,
2000 in the amount of
$28,980.91;
Payment Voucher pay estimate #4 for DCA dated March 1, 2000
in the amount of
$44,275.61.
DCA submitted the specified invoices to ACCENT with full knowledge
that ACCENT
would
in turn submit those tainted invoices to the State for payment.
This is evidenced by DCA's
stop
notice that DCA sent to the DPR on or about March 2000. 31
U.S.C. 3729(a)(1)(2)(5)
317. Eliminating all monies to the Joint Venture. It was common
knowledge among the engineers that
ACCENT/
GUNITE and DCA'S intent was to eliminate all profit to the
joint venture. Defendant
CARVER
stated after a State meeting at the Adamson House, on or about
March 9, 2000, that it
"Doesn't
take a rocket scientist to figure that out."
318.
PATRICK and GUNITE rented equipment to each other. Both defendants
rented the most
expensive
equipment, took as long as possible to perform, and rigged
rental time. 31 U.S.C.
3729(a)(1)(2)(3)(5)
319.
DCA not experienced to operate crane. DCA did not attend the
strongly suggested contractor
job walk
with the engineers in April 1999. However, one month before
the bid deadline, they were
on the
contractor's bid list of plan holders.
320.
Caused a near-fatal accident and continued to operate unsafely.
PATRICK'S son caused a
near
fatal accident to himself and several other workmen on the
Project and could have caused a
catastrophic
accident if the crane's boom fell in the direction of the
highway to cause a complete
blockage
of Pacific Coast Highway with cars traveling at 50 MPH. The
highway was closed for 2 ½
hours.
321.
Engine compartment smashed. Crane operators Chris Elmore and
Mike Mariscal, both first
time
crane operators, caused several other mishaps due to DCA/PATRICK
willful disregard for
safety
and proper use of equipment.
322.
Crane run without safety sensor shutdown. The crane's factory
installed Load Motion Sensor
Indicator
wiring and control box were disturbed and damaged due to incompetent
use of the crane
causing
the system to be inoperative for at least 1 ½ months.
323.
Windshield broken from falling debris. DCA and PATRICK workers'
reckless use of the crane
caused
lumber to dislodge and strike the cab of the crane breaking
the cab's windshield.
324.
20 gallons of hydraulic fluid leaked at pier entrance from
fill cap that was broken off.
PATRICK
was unknowledgeable of the proper use of the crane and broke
the fill cap off to the
hydraulic
system while turning the crane at the entrance to the pier.
325.
Running crane without swing break. The crane was repeatedly
used without the swing break in
operation
due to the improper use of the crane, jeopardizing the safety
of the men working around
the crane.
326.
Refused to clean oil. DCA intentionally kept the project as
filthy as possible, loading up as
many
contaminants as possible including welding rods left for weeks
on the ground, hydraulic oil
from
the crane, steel cut off shavings from the walk bridge.
327.
DCA did not follow plans and specifications. DCA did not use
the proper crane for pile
driving,
used too large a hammer and leads, did not use the proper
drill rig to drill out cobble in shore
area,
did not have the proper pump for jetting pilings to reduce
friction, did not have proper
vibratory
equipment to extract the pilings as required in the contract
documents, and did not have or
use the
proper fall restraint equipment for the oiler. (Exhibit 8.)
328.
Wrong type of crane used, should have used a lattice-boom.
A "Lattice Boom" crane is the
proper
crane for pile driving for full performance and accuracy.
329.
Pilings were not properly "battered." Wood piers
require the outside piles to be driven with
about
a 12 degree inward angle to give the pier lateral strength
during large surf and strong winter
storms
such as the storm of 1983. Since the pilings are not properly
battered, it is substandard work.
330.
DCA provided no written bid for the project. Defendant DCA
never provided a bid to the
contractor
of record.
331.
GUNITE wrote a sham contract with DCA after crane accident.
ACCENT and GUNITE
rigged
another contract after it had already worked on the project
for more than a week.
332.
DCA put project behind schedule. DCA was aware of the project's
time schedule requirements
and repeatedly
showed up late, unprepared, with no sense of planning, only
had a two-man crew,
and intentionally
put the project behind. They did not work with any sense or
urgency or diligence.
333.
There was no hearing held by DPR for substitution of a subcontractor
as is required. DCA was
not an
approved "replacement" subcontractor. 31 U.S.C.
3729(a)(1)(5)
334.
Conspiracy to defraud.
335.
GUNITE and DCA had no contract with the Joint Venture. Neither
company provided a bid
or was
under contract with the contractor of record. 31 U.S.C. 3729(a)(1)(5)
336.
PATRICK said he dealt with R.R. FEDERICO. PATRICK said that
he does not deal with
Rob Vonarb
who is the Vice President of GUNITE and the signatory to their
rigged contract.
337.
The piling guide damaged the protective wrap on the piles.
PATRICK welded a guide months
after
pile driving started and caused significant damage from chafing
to the protective wrapping on
the piles.
338.
DCA was incompetent with the equipment. DCA did not know how
to properly use the crane
to drive
the piles accurately and effectively.
339.
Using the crane out of the weight chart capacity. Jeff Patrick,
PATRICK's 19-year-old son,
was instructed
to override the safety controls to pick up the hammer leads
which weigh 12,000 lbs.
He was
told to do this with the boom extended out about 50 feet to
hold the 35 foot hammer leads.
The weight
chart allows for safe operation on "rubber" (tires)
to be no more than 3,500 lbs. If the
crane
was not riding on its tires and was stationary with its outriggers
out and set, the chart would
read
differently. The crane's safety computer had to be intentionally
and falsely programmed or the
crane
never would have started in this circumstance.
340.
DCA employees not experienced. Chris Elmore stated it was
his first "hammer job." Mike
Mariscal
was also completely inexperienced with the operation of the
crane, and Chris Rooney
almost
had his foot crushed (and did have it badly smashed) in front
of GAVINE. No safety
equipment
was used by PATRICK'S employees even after the crane accident
in which Jeff Patrick
was trapped
in the crane for 2 ½ hours, while wearing a hardhat.
Later, after the accident, Mike
Mariscal
refused to obey all safety laws in defiance of Relator's orders.
This was done as a ruse to
incite
a reaction from Relator that could be used as an excuse to
summon the SHERIFF and have
Relator
falsely arrested and removed from the Project.
341.
Intentional disregard for safety after OSHA violation.
342.
PATRICK was working on other jobs in Malibu and not supervising
his personnel during the
project.
343.
Jetting after pile driving to correct core alignment. DCA,
in violation of the contract
specifications,
jetted the pilings to correct piles after being driven to
refusal ("refusal" is the point at
which
the pile will no longer drive). 31 U.S.C. 3729(a)(1)
344.
Bents not brought back to original alignment. DCA allowed
bent caps that were changed to be
reinstalled
that were not in a parallel line with the shoreline causing
the bents to be out of "square".
The stringers
are too short to span over the bent caps causing a substandard
job.
345.
Gross insubordination from DCA employees. All DCA employees
ignored all safety and lack
of diligence
orders that Relator was documenting.
346.
Harassment from Mike Mariscal.
347.
Harassment from Chris Rooney
348.
Failure to keep schedule. Defendant's work ran more than 800%
behind schedule.
349.
RICO. Defendants were paid "under the table" by
A.A. FEDERICO and intentionally
"sandbagged"
the job to cause economic harm to the Relator.
350.
Drove piles next to 440-volt line. Both Defendant and Defendant
GUNITE's foreman Hunt
Woodman
had a reckless disregard for safety and refused GAVINE's orders
to protect the
440-volt
line.
351.
Insubordination toward GAVINE
352.
Bid-rigging. 31 U.S.C. 3729(a)(5)
353.
DCA not a listed subcontractor. 31 U.S.C. 3729(a)(1)
354.
The work reverts back to prime contractor.
355.
DCA did not have permission from the State to take over a
contract when not listed on the bid.
If not
listed, a contractor can not switch unless in circumstances
constituting a cause for public
emergency.
356.
A cause for public emergency is required to be reduced to
writing. This was not done.
357.
Piling guide damaged wrapping.
358.
Cut tips of piles to points. (Exhibit 7.)
359.
Pre-drilling the holes to extract cobble was not done. Contract
required drilling out the cobble
to reach
bedrock in the shore area of the pier to ensure piles would
reach the proper elevation
undamaged.
360.
No test borings done. Testing of the material from borings
extracted was never performed,
which
is a material breach of the contract. 31 U.S.C. 3729(a)(1)(2)
361.
Contractor did not submit results. Defendants did not provide
test results of test boring because
it did
not perform testing, in violation of the contract documents.
31 U.S.C. 3729(a)(1)(2)
362.
DCA and PATRICK falsified their certified payroll by not paying
the workman the required
prevailing
wage rate, a requirement of public contracting. 31 U.S.C.
3729(a)(1)(2)
363.
PATRICK is the president and Responsible Managing Officer
of DCA. DCA is liable for the
acts
of its employees under the doctrine of respondeat superior
and is vicariously liable.
364.
Vivian Patrick, corporate secretary for DCA, falsified the
certification of payment of payroll
and hours
worked by the workman. 31 U.S.C. 3729(a)(1)(2)(5)
365.
DCA and PATRICK have submitted false invoices for depth and
length of the pile driving.
According
to the logs, the length of the piles in each bent vary as
much as 7 feet in some instances
even
though the bedrock that the piles rest on is flat. when the
piles are only sitting in 8 feet of sand
from
bedrock to ocean floor.
366.
DCA and PATRICK, using employee Chris Rooney, chain sawed
all piles over the water
causing
large oil film on the ocean. This oil film was caused at every
bent over the pier because the
defendants
failed to use netting to catch the toxic and oil laced saw
dust and floating booms were not
used
to contain wood shaving and oil that was causing large oil
film on the water. This was a
mandatory
requirement of the Federal Permit issued by the Army Corps
of Engineers and an
addendum
to the contract was issued by the DPR to further warn of this
requirement which is in the
contract
documents. Netting was only used at bent 19 and was not used
on the previous 16 other
bents
from 2.2 to 18. 31 U.S.C. 3729(a)(1)(5)
367.
PATRICK knowingly submitted false certification of compliance
providing required prevailing
wage
rates for his employees. 31 U.S.C. 3729(a)(5)
368.
PATRICK submitted invoices for payment for pile driving knowingly
providing substandard
work
by not following the plans requiring jetting. Jetting allows
the sand to liquify and be displaced
out of
the way of the pile, to allow the tips to reach the proper
elevation and refusal without damage
to the
pile. Causing a false refusal from sand compaction, and sand
subsequently shifting during future
storms
, will cause the piles to sink. The government has received
substantially less than it bargained
for,
by not following specifications and industry standards for
pile driving. 31 U.S.C.
3729(a)(1)(2)(5)
369.
Vivian Patrick corporate secretary for DCA, knowingly submitted
a false stop notice to
defendant
TODD for payment knowing that the content of such notice was
untrue because the notice
merely
specified "Pile removal and related." This falsified
stop notice was in conspiracy with
GUNITE
and its officers to circumvent disclosure of true work description
of pile driving for which
DCA is
not properly licensed.
370.
DCA had an agreement with GUNITE to falsify a stop noticed
on or about March, 2000 in
order
to receive payment from the government for work which was
not properly performed or
performed
in a substandard manner. Specifically, the stop notice was
submitted to cover the true fact
that
the pile logs were falsified to further the scheme and enterprise
of collecting money not due to
them
for the work not performed.
371.
The acts of DCA in the conspiracy to defraud furthered the
shared objective of the defendants
ACCENT,
GUNITE, HALCO, FYFE, FIBRWRAP, SHERIFF, MALIBU CITY, and DA
to bilk
the government
out of money, damage Relator's interest in completion of the
Project (thereby
depriving
his business of profit and competitive advantage), and securing
favors for future work with
their
co-conspirators in the mass development of MALIBU CITY.
372.
The United States has been injured by paying funds for protection
of coastal waters under the
supervision
of the EPA. The United States has been further damaged by
the loss of coastal wildlife
they
have sought to protect.
373.
PATRICK president of DCA and Responsible Managing Officer
for the corporation,
knowingly
rigged a contract with corporate vice president Rob Vonarb
of GUNITE and backdated
a contract
to appear to be consummated before the crane accident. This
contract was "backdated"
to remove
ACCENT'S contract with DCA which was sent to DCA on October
4, 1999 by R.R.
FEDERICO.
When the State officials rejected Accent "taking the
job over" the contract was rigged
to give
control of the operation to GUNITE These contracts by ACCENT
and GUNITE represent a
false
record and collusive bid rigging thereby defrauding the government
of what was bargained for
by faithfully
executing the contract. The Government has been damaged by
this collusive bidding by
tainting
the contracts and causing the government to be unable to determine
what is legitimate. 31
U.S.C.
3729(a)(1)(2)(3)(5)
374. PATRICK, president of DCA, conspired with Rob Vonarb,
vice president of GUNITE, and
R.R.
FEDERICO, vice president of ACCENT. Both corporations are
controlled by A.L.
FEDERICO.
By agreeing to cause to be signed a certification by R.R.
FEDERICO and submitted,
under
penalty of perjury, that the bids were not sham and collusive
in June 1999, they allowed an
overt
act in furtherance of their conspiracy to defraud the government.
These sham contracts have
damaged
the government's interest in getting less than it bargained
for by making it impossible to
determine
the validity of all invoices and change orders subsequent
to those false records. 31 U.S.C.
3729(a)(1)(2)(3)(5)
375.
PATRICK received and accepted a letter addressed to DCA and
himself from R.R.
FEDERICO,
ostensibly on behalf of the Joint Venture , stating that Rob
Vonarb V.P. of GUNITE
would
be sending him a contract sometime soon and that he would
be ordering 68 piles as
recommended
by the Relator. This sham letter to Patrick was meant to show
an established intent to
use DCA
and Patrick. However, R.R. FEDERICO did not take part in any
of the material
calculations
or negotiations with the suppliers and therefore could not
know that the mistake in pile
count
came after the date of his sham letter to DCA and Patrick.
He did not know that the other pile
counts
could not reflect 68 at the time that it was written. Relator
has submitted all of the piling
quotations
to the U.S. Attorney General and U.S. Attorneys in its disclosure
statements. These false
writings
were meant to deceive the government by concealing the collusive
and sham bids and is a
false
record that was submitted to the CSLB. The governments interest
have been damaged because
of this
collusion. 31 U.S.C. 3729(a)(1)(2)(3)(5)
376.
PATRICK, president of DCA, and GUNITE, A.L. FEDERICO, president
and RMO of the
corporation,
could have easily trucked the crane down to Wilmington shipyard,
rented a barge and
tug to
bring the crane to the Malibu pier, anchoring it and driving
all of the piles in one month as was
in the
driving schedule. Instead , DCA and GUNITE took 8 ½
months and only drove piles half way
out.
This operation damaged the governments interests in purposely
stalling the project and not
paying
the government the required liquidated damages of $100,000.00.
31 U.S.C. 3729(a)(1)
377.
PATRICK falsified that Justin Patrick was certified to operate
the crane when in fact he was
not.
This has damaged the government in that "any damage to
the pier by the contractor shall be
replaced
at the contractors expense." However, when Patrick's
crane toppled over, it caused
considerable
damage to a historic wall. The wall has not been replaced
nor has any payment been
made
to compensate for the damage estimated at more than $25,000.00.
The government has
received
less than it has bargained for.
378.
PATRICK, president of DCA, submitted false records that were
in collusion with government
officials
by billing the government for 228 linear feet of driving that
was never preformed at $31.50
per foot
causing the government to pay False Claims of $7,182.00 knowing
that the driving logs
were
padded. The padded pile driving is outlined on pages 21 -
25 31 U.S.C. 3729(a)(1)(2)(3)(5)
379.
PATRICK intentionally, and with a reckless disregard, operated
the crane unsafely. His gross
negligence
was so abundantly clear that Relator told GAVINE that Patrick
was close to toppling the
crane
at the entrance to the pier while handling the rented pile
hammer. The rented pile driving
hammer
is only 12 feet long, the hammer leads weigh about 12,000
pounds and are much heavier
than
the hammer and 3 times as long. It was a mathematical certainty
that the crane was going to
topple.
PATRICK knew, or should have known, that the crane would topple
by seeing how the
crane
was leaning and the tires were lifting off the ground with
the hammer, at the entrance to the
pier.
Additionally, had the crane toppled in area approaching the
entrance, the crane would have
come
in contact with the electrical room, thereby energizing the
crane and electrocuting the operator
.
380.
Patrick was again extremely careless in November 1999 when
a second crane operator, Chris
Elmore,
deliberately left the boom to the crane extended out over
the street without any purpose .
When
Relator asked Elmore to bring the crane in so that it was
within the parking area, he refused.
381.
On or about November 14, 1999 PATRICK left the crane all the
way at the far east end
(thought
of as south) of the parking lot. It was agreed that all heavy
equipment would be kept away
from
the east end to protect hotel patron's views and enjoyment.
Patrick refused to comply with
Relator's
request to move the crane and it stayed until the next day.
That prompted the owner of the
hotel
to come over and talk with GAVINE about it, who told Gavine
that "Darian was well aware of
this
request going back to the Mitigated Declaration Meeting in
November 1998.
382.
PATRICK purposely left the crane hammer completely blocking
the 4 foot designated walk
path
for the lifeguard. Keeping the path clear was a mandatory
requirement of the contract. This
walk
way was to be unobstructed in the event of an emergency to
bring injured people from the
ocean
via the lifeguard boat and the pier. PATRICK , A.L. FEDERICO
and R.R. FEDERICO
were
intentionally creating as many nuisances as possible, as there
was enough room to leave the
hammer
down without obstructing the emergency path. This was done
overnight while the lifeguards
were
still on duty and left that way overnight, causing a hazard
to public safety.
383.
DCA and PATRICK with GUNITE, ACCENT, Hunt Woodman, A.L. FEDERICO,
R.R.
FEDERICO,
and GAVINE intentionally caused an unsafe condition by loading
more than 250 350
lb. 3"x16"x24'
stringers on the food prep deck. The deck was considered unsafe
by the DPR yet
PATRICK
and Hunt Woodman of GUNITE continued to overload the unsafe
area with more than
80,000
pounds of lumber. Relator demanded the lumber be cleared,
however, PATRICK and
Woodman
refused even though there was no shortage of space on the
parking lot. On January 28,
2000,
CARVER was at the food prep area of the Malibu Pier with GAVINE
. Barry Leslie ,
accompanied
by a representative from Edison, was converting a breaker
panel without authorization
from
the contractor. CARVER was on the phone with Engineer STEPHENS
while GAVINE was
telling
CARVER what ACCENT, DCA, and GUNITE were doing. CARVER told
STEPHENS
"...they
don't listen to us Gar, they do whatever the hell they want".
CARVER acknowledged that
DCA,
ACCENT and GUNITE were defiant to any orders from the inspector
or the engineers and
continued
a reckless disregard of anyone's safety of the project. CARVER
ordered that no more
than
a 1,000 pounds was to be on the food prep deck as it was considered
unsafe.
384.
PATRICK and DCA used the crane to carry workmen in the 40
foot long bridge that was
used
during construction for emergency personnel. Carrying Bill
Butler and another workman, the
crane
operator intentionally hoisted the bridge and the workmen
30 feet above the pier causing an
unsafe
condition. When the crane operator put the bridge in place
for the workmen to cut the piles,
moving
the bridge to an angle that no longer bridged the gap, the
safe access to the lifeguard tower
was completely
eliminated, cutting off all lifesaving, firefighting and all
access to the pier due to a 40
foot
open gap in the pier. PATRICK promised GAVINE the moving of
the bridge would only be for
20 minutes.
Instead, it lasted for 6 hours. This intentional disregard
for the safety and protection of
the Project
was evidenced by the fact that Relator had a proper scaffolding
system ready to go in
June
1999, and this was January 2000, 3 months into the Project.
GUNNITE, ACCENT, and
DCA's
deliberate intent was to stall every aspect of the Project
with the full knowledge of the
government
officials.
385.
Neither PATRICK nor DCA ever provided any insurance to the
General Contractor and never
provided
a certificate of insurance to the DPR
386.
DCA did not have a valid contract with the general contractor,
it did not file a mandatory 20
day preliminary
notice and could not file a valid Stop Notice, pursuant to
Civil Code 3098 & 3183
31 U.S.C.
3729(a)(1)(5)
387.
DCA and PATRICK were the proximate cause of the pier sinking
at Bent 7. This drop in the
pier
deck is due to PATRICK's gross negligence in using an untrained
or qualified crane operator
and not
having the required equipment to drive to the proper refusal,
thereby having the piles
properly
sitting on bedrock and nothing else.
388.
Neither DCA or PATRICK posses the required pile driving license
D30, for pressure
foundation
and pile driving. DCA and PATRICK's "A" general
engineering license is not a valid
license
as a subcontractor without the specialty license. Patrick
is knowledgeable of General
Engineering
licenses and specialty licenses as he possesses a D license
for drilling, eliminating the
question
that he does not know the difference. Not possessing the required
valid license bars any
recovery
because of the "unlicenced" work and all money is
recoverable. 31 U.S.C.
3729(a)(1)(2)(5)
389.
DCA was not a listed subcontractor on the bid to the DPR and
violated 4107 of the Unfair
Subletting
Practices Act. 31 U.S.C. 3729(a)(1)(2)(5)
390.
PATRICK is the president and responsible managing officer
of DCA and at all times relevant
herein
was acting in his official capacity as agent for DCA.
391.
DCA is vicariously liable for the actions of its agents or
employees while acting within their
official
capacity or within their scope of employment.
392.
The fraudulent representations were; (a) PATRICK purportedly
"rented" equipment to
GUNITE.
(b) the representations were false when made; On information
and belief A.L.
FEDERICO
was paying the $8,000.00 per month rental to Coast Crane Co.,
not PATRICK. This
belief
is based in part on the fact that more than 5 months after
the first crane was presumed a total
loss
from the crane accident, the damage was never paid for by
PATRICK or GUNITE. GUNITE.
would
not pay the bill because it would show the rental was not
from PATRICK. Additionally,
PATRICK
and GUNITE. did not have valid change orders to pull either
the stringers or the bent
caps
and the work was in violation by proceeding without authority
to complete work they were not
licensed
or under valid contract to do.(c) The speakers to the falsified
"rental" were DCA secretary
Vivian
Patrick to ACCENT v.p., R.R. FEDERICO. (d) The statements
were made from November
1999
through June 2000. The statements were made from the DCA office
in Camarillo CA., to
GUNITE.'s
office in Lake View Terrace. (d) The manner in which the representations
were false
were
that GUNITE. was paying the bill for the crane so DCA could
not "rent" time to GUNITE. or
ACCENT.
Neither DCA, GUNITE., or ACCENT had lawful contracts to preform
any of the work
they
were doing. Neither DCA or GUNITE. were "listed"
for their respective work and neither had
valid
licenses for their specialty work. Neither were General Contractors
for the Project and neither
can use
a General "A" license for the specialty work. PATRICK
used sham "Rental time" to create
additional
compensation that was never authorized, and the cost was not
incurred by PATRICK or
DCA as
A.L. FEDERICO was actually paying the bill directly or, on
information and belief, kicking
back
PATRICK the cost of the crane under the table. PATRICK'S lack
of diligence was evidence
that
he was not paying the high cost of the crane, which amounted
to more than $70,000.00. In
March
of 2000, Relator spoke to Coast Crane on the telephone with
GAVINE present. Craig
Young,
an employee of Coast Crane, verified that the crane was never
paid for and was still
incurring
rental time as it sat damaged from the crane accident on November
15, 1999. Young also
said
that " ...the crane has been photographed more than a
Hollywood movie star" apparently
referring
to the numerous insurance claims adjusters who had photographed
the crane for insurance
purposes.
The government has ultimately paid for the sham rental time
through collusive and sham
bids
causing the prices to be "swollen" and preformed
below industry standards causing the
government
to receive a substandard job. 31 U.S.C. 3729(a)(1)(2)(3)(5)
393.
(a)The fraudulent representation was made to GAVINE, that
DCA and PATRICK are lawful
"sub
tiered" pile drivers to GUNITE.(b) The representations
were false when made because DCA's
purported
contract with GUNITE. was after already commencing work. Its
original contract, on
information
and belief, was with ACCENT because PATRICK told Relator and
GAVINE in
November
1999 that he and GUNITE. wrote a "new" contract
after commencing work. (c) the
speakers
to the fraudulent contract involve, DCA, PATRICK, Vivian Patrick,
GUNITE., A.L.
FEDERICO,
Rob Vonarb, ACCENT, R.R. FEDERICO, GAVINE, TODD, CARVER,
DEMERY,
David J. Pasternak., AIG, and NATIONAL UNION. (d) the statements
were made in
November
1999 between PATRICK, DCA, and GUNITE. from DCA's office in
Camarillo to
GUNITE.'s
office in Lake View Terrace, on December 7, 1999 from TODD
and GAVINE to
Relator
and ACCENT at the Adamson House (Rotunda Room), on December
5, 2000 to Relator,
GUNITE,
ACCENT, and Superior Court Div. B . (e) the manner in which
the representations
were
false and misleading is that PATRICK and DCA, on information
and belief, knew that the
relationship
of ACCENT and GUNITE. was not legitimate or "buried it's
head in the sand"to the
facts.
TODD, ATKINSON,and GAVINE were given notice by Relator that
neither DCA nor
GUNITE
had a legitimate contract.
394.
(a) DCA fraudulently represented that they were lawfully entitled
to payment by invoicing
GUNITE.,
ACCENT, and David J. Pasternak the court receiver. (B) the
representations were false
when
made because DCA did not have a contract. (C) DCA and PATRICK
were the speakers
to the
False Claims. (D) DCA and PATRICK presented claims to the
government through
ACCENT
and GUNITE. from November 1999 through October 3, 2001 from
Camarillo CA.
To Lakeview
Terrace. (E) The manner in which the representations were
false are; DCA not "listed"
in the
bid, was not officially accepted as a "replacement"
pile driver by the awarding agency, did
not
timely file a valid stop notice by sending the awarding agency
a stop notice in March 2000, 6
months
after starting work, and did not send that notice to the contractor.
Caused a "substandard"
performance
of work by not driving the piles in the same distance from
bent to bent, causing the
stringers
to be too short and not span over and well past the bent cap.
DCA knew or should have
known
that the pile driving logs were "padded" to increase
the driving length on certain pilings
substantially
causing overpayment and a pure "mischarge" to the
government. DCA substantially
injured
the governments interest by not completing the required work
and taking 2 ½ times as long to
preform
the work. DCA did not preform the required "testing"
of core samples to determine the
soil
conditions causing a False Claim of "failure to test".
DCA falsely certified that a licensed crane
operator
was employed to operate the crane, using a "false entitlement"
and causing a "false
certification"
and damaging the governments interests through damage to government
property to
which
the contractor was responsible to pay for repair and did not.
This damage to government
property
is a False Claim lowering the governments intended bargain
by not paying for the damage.
AREIAS,
LA FRANCHI, and TODD did not seek compensation from DCA or
PATRICK
because
DCA did not provide an insurance policy to the General Contractor.
31 U.S.C.
3729(a)(1)(2)(5)
395. DCA and PATRICK were in conspiracy with ACCENT, GUNITE,
A.L. FEDERICO, R
.R. FEDERICO,
and on information and belief, government officials through
their disparate treatment
of Relator
and subsequent retaliation against Relator which violated
Relator's civil rights. DCA
created
and ratified a hostile work environment all the while knowing
that its employees were trying
to induce
a fight on the pier to have Relator removed (because of unruly
conduct), a remedy in the
contract
to be enforced by the State. Chris Rooney's statements include
(I'll throw you off the
f___ing
pier, and that's a fact) on January 15, 2000. Mike Mariscal
statement on April 24, 200
0 was
"Are you the product of a brother f___ing his sister
down by the river playing the banjo, or is
my first
impression correct, you fell on your head when you were a
kid and you are a f___ing re
tard,
you stupid f__k." "Come on follow me so I can express
my true aurora, I'm going to lay down
how it
is." On May 2, 2000, while Relator was cuffed and walking
past Mariscal with the 3 she
riff
deputies, A.L. FEDERICO and Huntington Woodman, Mariscal stated
loudly "Your going to be
someone's
b__ch in jail". The SHERIFF and State officials continued
disparate treatment by not
holding
anyone accountable for their actions. DCA conspired with A.L.
FEDERICO, GUNITE.,
government
agent PETTWAY by participating in the False Arrest, driving
piles knowing that th
ey were
not cured and ready for driving and allowing it's employees
to continually harass Relator and
on information
and belief conspire to engage Relator in a fight with one
of DCA's employees and
inducing
the SHERIFF into arresting Relator for "threats"
on their employees.
396.
DCA discharged pollutants into U.S. Navigable Waters from
November through May 2000
and at
every bent by cutting pilings off by DCA employee Cris Rooney
using a chain saw and
allowing
the creosote laced wood shavings to escape into the ocean
causing oil film on the ocean
surface.
The creosote continues to pollute the sand and soil because
piles were driven partially
wrapped
thereby exposing the unwrapped portion to come into direct
contact with the sand, ca
using
harm to fish, shell fish and other costal sea life. DCA'S
discharge to the ocean was not under a
permit
to do so.
397. PATRICK is the President, and agent for service of process
for DCA. He is the Responsible
Managing
Officer for the construction corporation being designated
as legally in charge of the
corporation's
construction activities.
398. PATRICK must be held liable for the acts of DCA, in that
there is nobody else that would
have
more responsibility for the corporations acts. Additionally,
it was PATRICK who entered into
a contract
with Rob Vonarb, a non responsible officer of GUNITE, both
knowing neither had the
lawful
right to enter into such contract. Neither were under contract
with the licensed contractor for
the Project
and the contract documents do not allow any assignment of
the contract without
the approval
of the State. The listing of GUNITE by the Relator on the
bid to the DPR does not act
as a
lawful contract for which GUNITE can take control of that
portion of the project . DCA was
knowingly
falsifying a contract under which both contractors were working
in collusion
with ACCENT.
399. DCA had communication with a Government Agency. In or
about November of 1999
PATRICK
informed Relator and a State Representative for the Project
that his contract was
rewritten
with GUNITE and was backdated. This disclosure was made while
Relator and GAVINE
were
standing on the side walk near the front gates to the pier.
GAVINE confirmed the
fraudulent
nature of PATRICK's contract to CARVER at the front gate to
the Malibu Pier in January
2000,
while Barry Leslie was changing the service panel in the electric
room. The only reason
for PATRICK
revealing fraud to GAVINE and Relator would be to conspire
to have the State
breach
the contract so GUNITE would be hired by AIG to finish the
Project. PATRICK knew that
GAVINE
was knowledgeable of DCA and GUNITE's fraudulent comntract.
By informing Relator
of the
fraudulent contract in the presence of GAVINE, both GAVINE
and PATRICK were
attempting
to induce Relator into going to an official such as the CSLB
such as the contractors
board,
with GAVINE and PATRICK both knowing that no investigation
would be forthcoming.
PATRICK
would have no incentive to disclose that information to the
both Relator and GAVINE,
for any
other purpose. PATRICK and GUNITE foreman had communication
with government agent
PETTWAY
to go ahead and drive piles that had not been repaired or
properly cured. FYFE
representative
Mark Postin said the piles would not be ready, PETTWAY said
"... whatever you
want
to do" meaning, drive the piles. This occurred on May
2, 2000, one hour before the SHERIFF
was
summoned to the pier.
400.
DCA sought payment from a government agency. PATRICK and DCA
did seek payment
through
ACCENT and David Pasternak to the government, and with all
of the federal agencies and
government
having direct control and being defrauded the False Claims
Act has been triggered.
The
Army Corps of Engineers, U.S. Coast Guard, The Environmental
Protection Agency, The
Federal
Consistency Unit, The Federal Agency regulating the Federal
Disabled Veteran Business
Enterprise
Program. The Federal Emergency Management Administration (FEMA).
401.
DCA made Fraudulent Misrepresentations. DCA and PATRICK made
representation that
the
work they were doing was under a lawful contract. Defendants
knew there contract was sham,
they
knew it was back dated to November 11, 1999. DCA also knew
that it had no intention of
performing
the work as specified in the approved schedule that was a
material part of its sham
contract
with GUNITE. PATRICK also knew that DCA's original contract
went out from
ACCENT
on October 4, 1999 and hid that contract with ACCENT and AIG/NATIONAL
UNION.
402. DCA made a Fraudulent Misrepresentation in seeking payment
from a federal agency. DC
A's fraudulent
misrepresentations were made to State governments who were
in collusion with
defendants
DCA and PATRICK in allowing Reverse False Claims with the
government agents
knowing
that the claims were false and knowing that the government
was receiving substantially less
than
it bargained for with the intent to defraud the government.
On February 10, 2000, CARVE
R told
Relator while on the Malibu Pier Parking lot , after Relator
called the SHERIFF because R.R.
FEDERICO
violated his restraining orders. CARVER's statement to Relator
was "I really don't
care
if the parks is getting ripped off, it's not my money, it's
the taxpayers and I really don't care."
GAVINE
said, "...You couldn't be this bad if you tried,"
and "...there not fooling anyone".
403. DCA's conduct defrauded the government in that there
were several other contractors ,wh
ich included,
ARB , R.B. and Associates, Shellmaker, ATC Equipment Rental,
Harold Loubaugh,all
well
known and capable pile driving companies that thoroughly analyzed
the work out at the pier
and
were ready to perform the work within a month and a half ,all
stating that it could be done,
PATRICK
knowingly took control of a project which he knew or had the
responsibility to know
was
false, he also knew that he was not properly manning the job,
another set up, with A.L.
FEDRICO
purportedly doing $30,000,000.00 a year in business (as quoted
in the Malibu Times
May
1999) he certainly would of assisted PATRICK with funds or
manpower and proper rigging
if the
intended result was legitimate production of the work. Or
best said by GAVINE "Intentional,
you
couldn't be this bad if you tried, after a while you run out
of excuses" that statement made by
the inspector
for the entire project summed it all up, INTENTIONAL.
404. Letter from ACCENT to D.C.A. Drilling & Construction
inc. dated June 24, 1999.
405. Subcontract (Short Form) between Superior Gunite and
DCA dated October 25, 1999 si
gned
November 11, 1999 (A) The allegations as set forth in ACCENT
paragraphs are incorporated
as if
set for in full.
406. Payment Voucher pay est. #1 for DCA Drilling dated December
1, 1999 for $6,866.54.
407. Pay Estimate #2 for DCA Drilling dated January 1, 2000
for $15,519.14.
408. Pay Estimate #3 for DCA Drilling dated February 1, 2000
for $28,980.91.
409. Pay Estimate #4 for DCA dated March 1, 2000 for $44,275.61.
FYFE
CO.
410. $12,000 repair defects - 1.02. Was paid false claims
for work that was to be certified and
not
require repairs. (Exhibit 9.) 31 U.S.C. 3729(a)(1)(5)
411.
Failure to inspect - 3.15. The defendants own specifications
called out for a certified inspector
to inspect
materials and application and no inspector was used. (Exhibit
6.) 31 U.S.C.
3729(a)(1)(5)
412. Submitted their own specifications. Defendant colluded
with State officials to create their own
specifications.
(Exhibit 10.) 31 U.S.C. 3729(a)(1)(2)(5)
413.
Outdated and misleading ICBO - 2.01. The International Conference
of Building Officials
certification
was for a completely different application over dry surface
masonry, additionally the
certification
was for a 1-year period and had expired March 1999 before
construction started.
414. Failed to test wrapping - 3.14. Defendant's own specification
called out for special testing
to be
preformed by an independent laboratory. (Exhibit 12.) 31 U.S.C.
3729(a)(1)(2)(5)
415.
FYFE CO. and FIBRWRAP had no contract. Defendant did not have
a signed contract
with
the contractor of record. 31 U.S.C. 3729(a)(1)(5)
416.
Failed to follow Army Corps of Engineers permit - 1.01. Defendant's
own specification and
material
used was substandard to the Army Corps of Engineers requirement
of Kevlar or
Polyethylene
for the wrapping of the piles. (Exhibit 13.) 31 U.S.C. 3729(a)(1)(2)(5)
417. Fiberglass inferior substitute 2.01. Fiberglass is less
than 1/5 the cost of Kevlar and is far less
suitable
for that application. (Exhibit 14.) 31 U.S.C. 3729(a)(1)(4)(5)
418.
Engaged in self-dealing. Fyfe set up a rigged deal with the
officials to use FIBRWRAP to
complete
the work not in conformance with the Federal permit. 31 U.S.C.
3729(a)(1)(5)
419.
Mail fraud, false specification. Fyfe knowingly mailed false
specifications to use a substandard
material
to greatly save on material costs and rigging the contract
with State officials to use its
own self
dealing company. 31 U.S.C. 3729(a)(1)(3)(5)
420. False certification - 3.09 Defendants falsified their
certification by never being certified by
the International
Conference of Building Officials.
421.
Disregarded safety masks and goggles. Defendants did not properly
supervise workmen who
regularly
were grinding epoxy to "replace" the entire system
that failed and did not have OSHA
required
respirators or eye protection.
422. FIBRWRAP not present at OSHA inspection. Defendants conspired
with officials to keep
workmen
away from the project the day Defendant GARCIA from OSHA came
to inspect the job
on January
24, 2000.
423.
Failed to comply with Stop Work Order in December 1999and
April 2000. Relator notified
Defendants
of the creosote leakage problem on or about November 10, 1999
and ordered an
unheeded
stoppage of work on December 28, 1999 and April 25,2000
due to
its continued failure.
424.
ICBO for concrete and masonry; ES eval. report no. 5282. Defendants
knowingly falsified
a specification
for the application of another type. (Exhibit 11.) 31 U.S.C.
3729(a)(1)(2)(5)
425.
Exposed to the sun, piles leaked epoxy through the weave and
into ocean. Defendants proved
their
product was untested when it unexpectedly failed by leaking
creosote in violation of the
projects
Army Corps of Engineers permit.
426.
Kevlar is twice as strong, and has better longevity. Kevlar,
the permit's real specification by the
Corp
of Engineers, has outstanding longevity and chemical resistance
capability. (Exhibit 16.)
427.
FYFE conspired with SHERIFF, DA, DPR, ACCENT and GUNITE to
conceal the use of
inferior
materials on the Project.
428.
FYFE made an agreement with R.R. FEDERICO and A.L. FEDERICO
on behalf of
ACCENT
and GUNITE to have Relator falsely arrested by SHERIFF for
harassment and
vandalism
with the single plan of preventing Relator from exposing the
fact that FYFE'S materials
were
sub-standard and leaking pollutants into the ocean. When Relator
asked to inspect the
materials,
the above-mentioned defendants, acting through FYFE, carried
out their scheme to have
SHERIFF
unlawfully arrest Relator to intimidate Relator into silence
regarding the sub-standard
materials.
429.
FYFE'S actions, in concert with the other above-mentioned
defendants, furthered the
enterprise
of fraudulently billing the government for substandard work,
work not performed and
damage
to the environment to profit from the mass development of
MALIBU CITY, the pier project
and exploitation
of profit from the environmental crimes.
430.
Relator's business was directly injured by FYFE'S overt acts
in that Darian Construction was
deprived
of its profit from the project and realized a disadvantage
in competitive ability with other
companies
for future work. Relator was further injured by the conspiracy
to have him unlawfully
arrested,
in violation of his civil rights, by SHERIFF acting under
color of law in the illegal arrest.
431.
The DA was in agreement with the FYFE defendants to deprive
Relator of his civil rights by the
overt
act of charging Relator with vandalism of his own property.
432.
The DPR also agreed by omission for failure to take action
on Relator's accusation of
substandard
materials in furtherance to the enterprise of profiting from
the mass development of
MALIBU
CITY.
433.
There were large cracks in piles, $70 per pile to repair.
Defendant CARVER requested a bid
to fill
the upper 3 feet of the pilings with silicone because they
were of such inferior quality. 31
U.S.C.
3729(a)(1)(5)
434.
Additional payment for non-authorized work. Defendants did
not have a valid signed change
order
to provide any additional wrapping not called for in the plans.
435.
Failure to keep contaminants from washing into ocean. Defendants
failed to supervise their
workmen
who intentionally kept the project full of contaminants and
willfully allowed them to wash
onto
the rocks and into the ocean.
436.
Conspiracy to defraud.
437.
Immediate removal of materials to prevent inspection. Defendants
removed materials from a
certain
storage bin to switch materials that were past their shelf
life in violation of their own
specification
and immediately after Relator issued a 2nd unheeded Stop Work
Order. 31 U.S.C.
3729(a)(1)
438.
Dealing directly with the State. Defendant ED FYFE and Defendant
CARVER conspired to rig
the bid
and specifications and to provide for a "fix" for
what was to be certified, inspected and
laboratory
tested for field defects none of which was done. (Exhibit
15.)
439.
Held job back through defective work. Defendant's original
plan was to have all wrapping
completed
in 20 days, with only incidental wrapping to be completed
later if needed.
440.
Certified payroll did not match State records of men on the
project. Defendants commingled
labor
that was preformed at the Malibu Beach Inn and a project near
Zuma Beach. 31 U.S.C.
3729(a)(1)(2)(5)
441.
Racketeering enterprise. Defendant HEATH CARR willfully falsified
a declaration to the court
on behalf
of R.R. FEDERICO and A.L. FEDERICO. Defendants ED FYFE and
CARR are in
concert
and privity of a false arrest, obstruction of justice, failure
to prevent a false prosecution. ED
FYFE
used CARR to sign fraudulent documents. CARR is not an officer
of either corporation and
has no
authority.
442.
Relator submitted Replark brand Kevlar. Relator submitted
the proper material for the project
by another
company for half the price of Fyfe's non-authorized materials
that cost one-fifth the cost
of Kevlar.
443.
Supplier with one hundred applications in service. Defendant's
self imposed specification is
fraudulent
because there were not 100 applications in service and the
State officials were
aware
of this.
444.
ICBO No. 5282.
445.
On or equal. Defendants self imposed specification did not
provide to the contractors bidding
the project
the name of another company or brand considered their product's
equal as required in
public
works contracts. 31 U.S.C. 3729(a)(1)(5)
446.
FYFE CO. was the only company to have an ICBO. Defendants
knew that their ICBO
certification
did not pertain to the subject project and used it as a means
to defraud the public by
using
an inferior product.
447.
FYFE CO. was the listed subcontractor. Fyfe is a California
Corporation and is a separate
entity
from FIBRWRAP.
448.
Engineers Scott Arnold and Representative Pete Milligan, engineers
for Fyfe Co. at the job site,
never
came to the Project after construction started, even though
both had several meetings with
Relator
during the planning stages of the project. (Exhibit 17.)
449.
At no time did FYFE CO. say they would use FIBRWRAP. CARR
and FIBRWRAP was a
"shell
game" that ED FYFE used to self deal his own company
into projects. 31 U.S.C.
3729(a)(1)(5)
450.
Created sham bid with ACCENT. Relator caught on to Fyfe's
scam and was looking for a
honest
and more qualified contractor to provide the proper materials
and workmanship, Fyfe knew
this
and conspired with ACCENT to rig the bid.
451.
By FYFE CO. not performing work, control reverts back to prime
contractor. If the listed
contractor
does not execute a contract then the prime contractor of record
shall have control of the
work.
452.
Prescribed their own method for repairing non inspected and
non certified work. Defendants
prescribed
a "quick fix" method of using an aluminum based
paint manufactured by Dupont to
correct
there wholly bogus falsely certified , falsely field inspected
and non laboratory tested work
and material.
31 U.S.C. 3729(a)(1)(2)(5)
453.
FIBRWRAP was not a listed subcontractor. Defendant FIBRWRAP
was not listed as a
subcontractor
by the Relator and did not have a contract with the contractor
of record. (Exhibit 18.)
On October
9,1999 Relator informed FIBRWRAP by certified mail that they
did not have a valid
contract
with the joint venture who was the contractor of record. Despite
the fact that FIBRWRAP
had been
notified by Relator that they had no valid contract, they
presented invoices to be paid.
Specifically,
in the amount of $93,500.00. FIBRWRAP submitted the specified
invoices to
ACCENT
with full knowledge that ACCENT would in turn submit those
tainted invoices to the
State
for payment as evidenced by FIBRWRAP stop notice that FIBRWRAP
sent to the DPR on
or about
February 2000. 31 U.S.C. 3729(a)(1)
454.
State work should haven take 20 days, instead it took 200.
Defendants falsified work took
1,000%
longer to complete because of the remedial work that had to
be done to correct the systems
continued
failure.
455.
Would not follow direction from Relator. Workman would not
follow directions or orders that
were
given to stop defective work, keep jobsite clean, keep fence
shut that was cut open to allow
access
to the Malibu Beach Inn.
456.
FYFE CO. product would not insure strength to the piles supplied
by INTERNATIONAL;
three
piles broke in half. Fyfe's material was substandard for the
required application and was
extremely
brittle which provided no strength to the piles.
457.
FYFE CO. conspires regarding spray-painting documentation.
Defendants workman phoned
their
office reporting Relator wanted to inspect the Lot # on the
5 gallon containers on May 2, 2000
at about
11:30 a.m., At 1:30 4 squad cars with 4 separate deputies
including a sergeant accosted
Relator
and falsely imprisoned him for exposing False Claims (Whistleblowing).
458.
Falsely arrested for vandalism, trying to oppress documentation
of defective work.
459.
FYFE CO. materials not in conformance with the Army Corps
of Engineers specification.
Defendants
knew their materials were not in conformance but intended
to save the cost difference by
using
the inferior materials. 31 U.S.C. 3729(a)(1)(2)(5)
460.
Up until October 3, 2001, the only subcontractors paid were
FYFE CO., BOOKOUT and
INTERNATIONAL.
461.
The wrap of an additional six feet not approved by contractor.
Defendants did not have written
authorization
by the contractor of record and violated the contract by increasing
the per foot price
for doing
exactly the same application of work, constituting false pricing.
31 U.S.C. 3729(a)(1)(2)
462.
Men working on adjoining project at the Malibu Beach Inn.
Defendants workmen were
working
simultaneously on the hotel next to the pier parking lot and
billing the State for work.
463.
Certified payroll withheld and concealed. Defendants withheld
certified payroll, a violation of
the contract
documents. 31 U.S.C. 3729(a)(1)(2)(5)
464.
FIBRWRAP would not reveal workmen's names. Defendant,s with
the inspectors knowledge,
would
not reveal the workmen's names on the project to Relator on
May 2, 2000, two hours before
the false
arrest.
465.
FIBRWRAP increased the per foot price to $56 for additional
wrapping. Defendants increased
the per
foot price with a direct negotiation with State officials.
Violation of Truth in Negotiations Act.
466.
ED FYFE is president of FIBRWRAP and is responsible for the
actions of his employees
under
the doctrine of respondeat superior and FIBRWRAP is vicariously
liable.
467.
ED FYFE president of both Fyfe Co. and FIBRWRAP falsified
every certification for payroll
which
included but was not limited to the following the following
payroll periods, 11-99 to 6-2000.
The certification
states under penalty of perjury that the employees were paid
prevailing wages which
they
were not. Prevailing wage for a journey man is about $27.50
an hour and $22.50 an hour for a
laborer
depending on the trade varying only about a dollar. Fyfe knowingly
and falsely certified they
were
paying prevailing rates when in fact they only received $10.00
an hour. A material part of the
contract
was that only qualified journey level workers are to be used
for the pier
renovation
project, the governments interests have been damaged by not
receiving workmanship by
those
skilled in the trade. 31 U.S.C. 3729(a)(1)(2)(5)
468.
On December 14, 1999 CARR told GAVINE that FIBRWRAP has nothing
to do with FYFE
CO. And
that ..."Tom Carver should not get hasty, there is nothing
in the specs that say anything
about
containing creosote." This sham of a statement by CARR
was designed to defraud the
government
from FYFE/FIBRWRAP taking responsibility for the pile wrap
failure and bid rigging
and sham
contractual relationships.
469.
GAVINE said to HEATH CARR on December 14, 1999 ..."well
that is between you and Tom
Carver,"
Fyfe/FIBRWRAP received the benefit of something it was not
entitled to by deceiving the
government
and or colluding with officials to receive sole contracting
status for materials and
application
while knowing that the specifications were falsified. 31 U.S.C.
3729(a)(1)(2)(5)
470.
CARR told Plaintiff and GAVINE, ..."I would never have
done this without a contract if ‘Ed
and Tom
Carver were not good friends." CARR and ED FYFE were
aware that Relator sent them a
confirmed
fax and certified letter on October 9, 1999, that only a signed
contract by the Joint
Venture
and signed by both contracting firms would be valid. They
chose to contract solely with
ACCENT
and signed and delivered ACCENT October 4, 1999 contract.
Additionaly FYFE Co.
and FIBRWRAP
willfully withheld this signed contract from Relator, defrauding
the Relator and the
Government
by knowingly withholding contract documents that are ostensibly
a contract with the
Relator
for the Project. FYFE Co. or FIBRWRAP cannot assert that they
did not know because
one cannot
contract with a contractor who is prevented from obtaining
the contract to which he is a
party.
Fyfe/FIBRWRAP and ED FYFE, CARR were also in conspiracy with
the Bonding
Companies
and their agents, in that they were in possession of those
illegal contracts and would not
disclose
those contracts to the Relator, even though it was their fiduciary
duty to disclose the fraud
immediately
to Relator as Relator was the signatory to the payment and
performance bonds of the
project.
No other contractual arrangements between purported subs and
the surety could be binding
or legal
without the Relators acceptance. NATIONAL UNION, AIG and LAMBERSON
KOSTER
were all privy to the illegal contracting and further concealed
this by accepting backdated
"Scope
of Work" letters in March 2000 upon CSLB inquiry, these
scope of work letters, not only
were
a sham, but did not amount to a valid subcontract with the
contractor. All of the Defendants
them
knew it.
471.
Fyfe and FIBRWRAP were paid for 216 feet of wrapping that
was never installed, the
bedrock
elevations that were confirmed by Relator and another drilling
company in March of 1999
show
the pile logs are falsified to allow more payment to the subs
the following piles were overstated
in their
length of driving. This has resulted in over a $12,000.00
mischarge to the government by
falsifying
228 feet extra as being driven when it was not, all of the
defendants involved with the pile
driving
knew this.
472.
CARR on October 9, 2000 at 7:30 p.m. told Relator on the phone
that he received a contract
from
ACCENT and that it did not have the joint venture name. Relator
explained to CARR that it
had to
be a Darian Construction Co.,Accent Builders contract signed
by both companies. CARR
responded
by saying "Ed told me to go ahead and sign it" "I
don't know what I should do" Relator
explained
to CARR that it was a joint venture. CARR then stated "are
you threatening me?" Relator
informed
CARR that his statement was incorrect. CARR's statement was
a set up to put Relator in a
Defensive
position so CARR could sign a sham contract with Federico,
knowing Federico's intention
of overtaking
the job and additionally, knowing his lack of capacity to
sign a contract on behalf of
FIBRWRAP.
CARR was not a managing officer of the corporation in any
capacity. FIBRWRAP
concealed
the contract with ACCENT dated October 4. 1999. Although Relator
never saw the
contract
that went to FIBRWRAP, R.R. FEDERICO'S backdated "scope
of work" letters stated
the contract
was sent to Ed Donnelly, the person who provided the unsigned
bid "to all contractors"
dated
2 days before bid opening. Ed Donnelly does not have the capacity
to sign a contract for
FIBRWRAP
as he is a journeyman worker for the installation of the wrapping
materials and not one
of its
officers. ED FYFE knowing that he is the president and RMO
of the corporation, was using
CARR
and Ed Donnelly to sign contract documents knowing them to
be invalid, defrauding the
government
and the contractor by contracting with other de facto contractors
depriving the
government
of a valid contract and valid administration of the project.
31 U.S.C. 3729(a)(1)(2)(5)
473.
CARR signing a stop notice sent to the DPR for $93,049.3 dated
February 2000. It was
signed
under penalty of perjury that Carr was an agent authorized
to sign for the corporation. CARR
knew
that he was not an officer and his stop notice was sham. ED
FYFE knew that he was the only
one to
legally sign the stop notice. However, FYFE knew or should
have known, that the contract
with
ACCENT was rigged and a sham contract. No stop notice could
be perfected without a valid
enforceable
contract, which the defendants knew they did not posess
474.
ED FYFE, FYFE CO., or FIBRWRAP never provided an insurance
policy to the contractor
or to
the DPR naming the contractor as an additional insured for
Workers Compensation or Liability
insurance.
475.
FIBRWRAP did not have a valid contract with the General Contractor.
It did not file a
mandatory
20 day preliminary notice and could not file a valid Stop
Notice. Pursuant to Civil Code §
3098
& 3183.
476.
FIBRWRAP and ACCENT received time extensions that were falsified.
The contract
documents
do not provide for excusable dely when it was caused by the
contractor's or
subcontractor's
own neglect or fault. The creosote leakage from the pile wrappings
were not an
excusable
delay and ACCENT, R.R. FEDERICO, CARR, CARVER, GAVINE , STEPHENS
all
new this.
The subcontractors conspired with the government agents to
use this delay to in effect
lower
the liquidated damages fines that was a material part of the
contract, thereby lessening what
the government
bargained for by not collecting the required liquidated damages.
Time extensions
were
originally denied for this defective work and were subsequently
modified to allow time
extensions
of 7 work days lowering the mandatory liquidated damages to
be paid to the government
by $3,500.00.
This amounts to a $3,500.00 reverse false claim on the government.
Government
officials,
in collusion with private contractors, knew this was not allowed
and deliberately applied the
extension
to lower the liquidated damages, show the project a lower
percentage of time behind
schedule,
and give the appearance of a legitimate delay, so as to allow
compensation for the defects,
fully
knowing the lack of contract, lack of testing, and falsified
ICBO (International Conference of
Building
Officials) certification. 31 U.S.C. 3729(a)(1)(2)(4)(5)(7)
477.
FYFE CO. falsely certified materials that have since lost
all of the original color on all of the
pilings.
The coloring has faded to a light grayish white from the original
dark brown. The pilings no
longer
resemble or match the color of the existing pilings which
was a requirement of the contract. 31
U.S.C.
3729(a)(1)(2)(5)
478.
ED FYFE is the president of FYFE CO. and at all times relevant
herein was acting in his official
capacity.
FYFE CO. is vicariously liable for the actions of its agents
and employees while acting
within
their official capacity or scope of employment.
479.
- October 6, 1999 Letter to FYFE CO. from ACCENT Re: Letter
of Intent -Scope
Attachment
A.
480.
Fyfe Associates bid May 10, 1999 "To all Contractors"
quotation #542b1-1905-99 total
$56,172.80.
481.
ACCENT pay estimate for Fyfe Associates pay est. #1 dated
December1, 1999 total
$5,533.44.
482.
ACCENT pay estimate Fyfe Associates pay estimates #2 dated
January 1, 2000 total
$11,905.28.
483.
ACCENT pay estimate Fyfe Associates pay estimates #3 dated
February 1, 2000 total
$63,928.00.
484.
ACCENT pay estimate Fyfe Associates pay estimates #4 dated
March 1, 2000 total
$93,049.92.
485.
ICBO Evaluation Services inc. evaluation report ER-5282 dated
March 1, 1998.
486.
ACCENT attachment A and Special Provisions to Fyfe & Associates.
487.
Fyfe pay estimates dated December 1, 1999 for $5,533.44 signed
by R.R. FEDERICO.
FIBRWRAP
488.
ED FYFE is president of FIBRWRAP and its responsible managing
officer. FYBRWRAP is
responsible
for acts of it's employees including ED FYFE under the doctrine
of respondeat superior
and FYBRWRAP
is vicariously liable for all of his actions.
489.
FIBRWRAP had knowledge of the acts of its employees thru the
actions of its principle and
"RMO"
ED FYFE.
490.
FIBRWRAP was not listed on the bid to the DPR and violated
4107 of the Unfair Subletting
Practices
Act.
491.
- Stop Notice by CARR February 9, 2000 for 93,049.92 (A) CARR
fraudulently represented
that
FIBRWRAP Construction Inc. was lawfully authorized to perform
work on the Malibu Pier and
was legally
entitled to file a valid stop notice. (B) the representations
were false when the stop work
order
was filed almost 4 months into the project with FIBRWRAP Construction
not being paid.
FIBRWRAP
knew it had a fraudulently concealed contract with ACCENT
and fraudulently
declared
that labor and materials were furnished to Darian Construction
Co./ Accent Builders Inc. ,
CARR
declared under penalty of perjury that he was an authorized
agent of FIBRWRAP
Construction
Inc. although he was not a Corporate officer. Carr also stated
that the total amount of
labor
and materials are 93,049.92 without any authorized change
orders or a valid contract. (C) This
speakers
involved were CARR , ED FYFE, R.R. FEDERICO, CARVER, David
Veis lawyer for
the surety,
Leonard Giraci on behalf of AIG, David Pasternak court receiver,
TODD, GAVINE. (D)
The statements
were made on February 9, 2000 by CARR at 146 W. 132 ND ST.
STE. B , Los
Angeles
Ca., Parks and Recreation Sacramento, Malibu Pier , Lakeview
Terrace ACCENT, FYFE
CO. San
Diego, AIG New York, David Pasternak Century City, (E) CARR
did not have authority
to sign
stop work notice's for FIBRWRAP Construction, There was no
valid contract, the stop
work
order was not filed a the beginning of the job giving "notice
to the contractor", their was no
direct
contract with the general contractor , the general description
of the work and material is left
unstated
and only stated "Wrapping Piles" , second page of
the quote provided to "All Contractors"
dated
May 10, 1999 signed by Edward J. Donnelly , Donnelly is not
an officer of the corporation on
FIBRWRAP,
the quote represented that the license number for the quote
was for Fyfe Associates,
Inc and
is false . The license number is issued to FIBRWRAP Lic. #
621404. FIBRWRAP then sent
a letter
on the same date of February 9, 2000 to NATIONAL UNION Signed
by CARR as
General
Manager for the Corporation. CARR's stop notice is also defectively
filed because all of
their
work was completed as he had stated on February 10, 2000 at
the Malibu Pier that they were
taking
the saturator machine from the job. David J. Pasternak and
David Veis signing on behalf of
the surety
company knew the stop work order was not valid and the State
officials were without
authority
to pay for work.
492.
- Letter from FIBRWRAP Construction Co. to NATIONAL UNION
dated February 9,
2000
by CARR.
493.
Letter from FIBRWRAP Construction to R.R. FEDERICO and Bruce
Darian dated March 9,
2000
by CARR (A) CARR sent the letter to R.R. FEDERICO knowing
that ACCENT would not
send
or allow Relator to see the document the document was not
obtained until summer 2000 4
months
after it was written it submitted a false claim for payment
for Nov./Dec. $28,086.40 Dec/Jan
$8,635.52
Jan/Feb $27,206.08, Additional 6ft PCO 02 changing the unit
price to $51.92 for
$9,600.00
and Jan Feb. billing $56,328.00 totaling $93,049.92 (B) CARR
knew the
representations
were false when they were made (C) the speaker of the document
was CARR
mailing
it to ACCENT, Los Angeles addressed to R.R. FEDERICO and Bruce
Darian (D) The
letter
is dated on March 9, 2000 and sent to 1000 West Sunset Boulevard,
suite 1000 Los Angeles,
CA. 90012
from 146 West 132nd street suite B Los Angeles CA. 90061 (E)
The manner in which
the representations
were false and misleading (a) "Please review the attached
STOP NOTICE filing"
dated
March 9, 2000 one month after the filing with the surety,
a contractor is required to give notice
at the
beginning of work to the contractor and the surety giving
notice . The quote is unsigned by a
non officer
to FYFE the "Attachment A" sheet is noticeably missing
the front page and on information
and belief
has ACCENT name as BOOKOUT, HALCO, and ARROW's, pay estimates
#1,#2,#3
are only
signed by R.R. FEDERICO of ACCENT and the #4 is not signed.
494.
Letter from Cozad, Krutck & Georggin to TODD, David Veis
and David Pasternak Re:
FIBRWRAP
dated March 22, 2001.
495.
Letter to Darian/Accent from AIG dated April 4, 2000 sent
to both addresses Re:
FIBRWRAP.
496.
Letter to NATIONAL UNION dated February 9, 2000 Re: Bond Claims
by FIBRWRAP
Constructions
Co.
HALCO
497.
Submitted invoice for 600-volt breaker which was not needed.
Defendants submitted for
payment
an invoice in the amount of $1,200.00 to change the existing
breaker that did not need to
be replaced.
A defective splice at the j-box on bent 9 resulted in a 7-day
power outage causing the
ocean
lifeguards' equipment to be inoperable and causing communication
to be down. 31 U.S.C.
3729(a)(1)
498.
No contract. Defendants did not have a valid written contract
with the contractor of record. On
October
9, 1999, Relator informed HALCO by certified mail that they
did not have a valid contract
with
the joint venture who was the contractor of record. Despite
the fact that HALCO had been
notified
by Relator that they had no valid contract, they presented
invoices to be paid. Specifically
for the
amount of $64,500.00. HALCO submitted the specified invoices
to ACCENT with full
knowledge
that ACCENT would in turn submit those tainted invoices to
the State for payment as
evidenced
by HALCO stop notice that HALCO sent to the DPR on or about
November 2000 in
the amount
of $85,000.00. 31 U.S.C. 3729(a)(1)(2)(5)
499.
Conspiracy to defraud.
500.
Bid-rigging.
501.
Dealing directly with State officials. Defendants dealt directly
with Defendant CARVER to
change
the existing single phase feed to three phase to provide for
2 three phase services. Relator
had recognized
the discrepancy in the different services 1 year prior.
502.
Failure to keep schedule.
503.
Did not provide new equipment, not affected by critical path.
504.
Dealing with State without contractor authorization. Defendants
negotiated change orders
directly
with engineers without signed change orders in violation of
the contract documents.
505.
Carpenters from GUNITE installing conduit. Workmen from other
companies who are not
experienced
in the trade installed defendant's materials.
506.
RICO.
507.
ORUM is president and responsible managing officer of HALCO.
HALCO is responsible for
the actions
of the corporations employees under the doctrine of respondeat
superior and is
vicariously
liable.
508.
HALCO and ORUM its president have falsified the corporations
certified payroll by certifying
that
the workman were paid prevailing wage when they were not and
violated a material part of the
contract
documents that require only journey level worker being paid
27.50 an hour to preform
construction
work on the Malibu pier. 31 U.S.C. 3729(a)(1)(2)(5)
509.
HALCO knowingly submitted inflated invoices to the government
for services never preformed
knowing
that the project contract does not provide for any other compensation
other than for work
in the
specification manual. 31 U.S.C. 3729(a)(1)(2)(4)(5)
510.
HALCO conspired with Defendant GUNITE to have GUNITE provide
electrical materials
namely
plastic conduit, and had GUNITE workman install those materials,
additionally billing the
government
for work provided to Defendant GUNITE that had nothing to
do with the contract
specifications
which was suppling power to GUNITE'S work shed.
511.
ORUM conspired with ACCENT and GUNITE by an agreement with
R.R. FEDERICO and
A.L.
FEDERICO to take control of the Project and deprive Relator
of his business interest and
profit
in the Project. The actions of ORUM and HALCO were unlawful
in that they did not have the
authority
to perform work on the Project but proceeded to work under
the direction of A.L.
FEDERICO
and R.R. FEDERICO. The actions by ORUM and HALCO furthered
the common
scheme
and enterprise of wresting control of the Project from Relator
and receiving payment from
the government
for work not performed or performed unlawfully without valid
contract. ORUM and
HALCO'S
acts caused injury to Realtor's business by depriving Darian
Construction of the profit
from
the Project.
512.
The United States was injured by ORUM and HALCO'S actions
by being cheated out of the
benefit
of quality work performance in the Project, which rests in
coastal waters controlled by the
federal
government. The United States is further damaged by the substandard
work which is
currently
causing the coastal waters to be polluted, endangering people
and wildlife.
513.
HALCO'S change order for a faulty switch was also a sham,
after the power was off for a
week
HALCO install a used/ reconditioned switch, (a violation of
the contract, only brand new
equipment
shall be used) trying to secure an approval from the Relator,
Gavine gave the go ahead to
change
the switch, HALCO knew the power failure was from a burn out
at pull box Bent 9, this
mischarge
was in collusion with State officials to charge the government
$1,200.00.
514.
HALCO and ORUM also mischarged the government for a "design
change in conduit" that the
Relator
or the officials ever approved. This fraud in collusion with
ACCENT, GUNITE and DCA
was meant
to substantially slow the project by taking apart every bent
thus allowing an intentional
work
slow down.
515.
HALCO was well aware with the contract documents only allowing
compensation for only the
work
provided under the terms and specifications of the plans and
no other payment would be
allowed.
516.
HALCO charged the government for work that was never preformed,
including but not limited
to installing
conduit which was installed instead by GUNITE workman, HALCO
chose to stay away
from
the project and would not preform tasks or supply equipment
that was on the plans and not
apart
of any other construction activity, with full knowledge that
there activity was not legal, they
took
charge of a contract of which they refused to preform, their
knowledge that the project was
illegal
was evidenced by not ordering and suppling all of the required
materials and equipment
causing
the government to receive substantial less than it bargained
for.
517.
HALCO and ORUM knew or should of known that Kevin Shields
is not an officer of Halco
Service
Corporation and that the contract between Shields and ACCENT'S
R.R. FEDERICO was
sham
and not valid.
518.
Letters sent to Barry Leslie by David J. Pasternak were sham
with Pasternak knowing or
should
of known that Leslie is not a managing officer of HALCO and
Leslie has no managing control
over
the corporation nor was there a valid enforceable contract.
519.
HALCO billed the government for lost profit, mobilization,
rental of electrical cable, and other
items
none of which are allowed under the terms of the contract,
HALCO provided less than
$10,000.00
in labor and material, submitted $85,000.00 stop notice in
November 2000 to
Defendant
TODD and payment was payed by David J. Pasternak in October
2001 after providing a
full
release Halco continues to pursue claims against ACCENT and
NATIONAL UNION.
HALCO'S
lawsuit was a sham to cover the fact that they were all in
collusion. 31 U.S.C.
3729(a)(1)(2)(4)(5)
520.
HALCO'S change order for a faulty switch was also a sham,
after the power was off for a
week
HALCO install a used/ reconditioned switch,(a violation of
the contract, only brand new
equipment
shall be used)trying to secure an approval from the Relator,
Gavine gave the go ahead to
change
the switch, Halco knew the power failure was from a burn out
at pull box Bent 9, this
mischarge
was in collusion with State officials to charge the government
$1,200.00. 31 U.S.C.
3729(a)(1)(2)
521.
HALCO and ORUM also mischarged the government for a "design
change in conduit" that the
Relator
or the officials ever approved. This fraud in collusion with
Accent,GUNITE and DCA was
meant
to substantially slow the project by taking apart every bent
thus allowing an intentional work
slow
down. 31 U.S.C. 3729(a)(1)(2)
522.
HALCO was well aware with the contract documents only allowing
compensation for only the
work
provided under the terms and specifications of the plans and
no other payment would be
allowed.
523.
HALCO charged the government for work that was never preformed,
including but not limited
to installing
conduit which was installed instead by GUNITE workman, HALCO
chose to stay away
from
the project and would not preform tasks or supply equipment
that was on the plans and not
apart
of any other construction activity, with full knowledge that
there activity was not legal, they
took
charge of a contract of which they refused to preform, their
knowledge that the project was
illegal
was evidenced by not ordering and suppling all of the required
materials and equipment
causing
the government to receive substantially less than it bargained
for. 31 U.S.C. 3729(a)(1)(2)
524.
HALCO and ORUM knew or should of known that Kevin Shields
is not an officer of Halco
Service
Corporation and that the contract between Shields and ACCENT'S
R.R. FEDERICO was
sham
and not valid.
525.
Letters sent to Barry Leslie by David J. Pasternak were sham
with Pasternak knowing or
should
of known that Leslie is not a managing officer of HALCO and
Leslie has no managing control
over
the corporation nor was there a valid enforceable contract.
526.
HALCO'S electrical supervisor Barry Leslie told Relator at
the Malibu Pier on February 3,
2000
that he did have an ACCENT signed contract and he would give
Relator a copy if Relator
agreed
to give him a copy of the Contractor's State License Board's
written decision removing
ACCENT
from the joint venture license effective October 28, 1999.
Leslie stated that ... "it will be
an even
exchange" "at the same time" . "You give
me the letter and I'll give you the signed contract".
HALCO
in conspiracy sought to fraudulently conceal the status of
it's contract with ACCENT and
the surety
company, causing a fraud in the inducement against the government.
Relator had asked
Leslie
if HALCO had a signed contract with ACCENT near the wall that
was crushed by the crane
on January
5, 2000. Leslie would not answer Relator, Although Leslie
seemed to be disgusted with
Accent
Builder's he would not reveal the contract or the status.
He told inspector GAVINE in
Relator's
presence ..."Ron is dangling his ACCENT BUILDERS' check
book in our face and he
promised
us all these other jobs if we went along with it". Clearly
ORUM and Leslie as well as
inspector
GAVINE knew ACCENT'S contract to be sham and HALCO was motivated
to rig the
contract
with the expectation of several future jobs. These same promises
were also conveyed to
CARR.
And Chief engineer CARVER told Relator "there all going
with the money, they know that
you won't
have any future jobs so they could care less".These statements
eliminated any possibility of
the government
officials not knowing of the take over of the project.
527.
HALCO never provided an insurance policy to the contractor
or the DPR naming the
contractor
as an additional insured.
528.
HALCO did not have a valid contract with the General Contractor
it did not send certified mail
a mandatory
20-day notice and could not file a valid Stop Notice.
529.
HALCO and Barry Leslie were notified by confirmed fax and
certified returned receipt letter
that
a contract was needed to be signed by both parties to be valid.
The exact contents of the letter
was as
follows; "Dear Barry, My partner, ACCENT may have sent
to your company a subcontract
which
has only Accent Builders Inc. name and contractors license
number. Mr. Federico mistakenly
sent
these out. Please be aware that our Joint Venture Co. and
License are the contractors of
record.
All contracts, purchase orders, change orders, payments and
all other legal documents must
have
this exact name style and license number along with our joint
signatures to be valid. Thank you
for your
cooperation in this regard." There was unequivocally
no misunderstanding as to both
contracting
entities to approve and sign all documents of the joint venture
and HALCO'S fraudulent
contracting
with ACCENT was designed to "create more for both companies"
substantially injuring
the governments
interest and the Relator by bid rigging and sham contracts.
Letter was faxed and
with
confirmation at 10/09 23:58 to 1-323-933-2043, certified letter
sent the following day.
HALCO
welcomed signing a contract solely with ACCENT and R.R. FEDERICO
knowing
Federico
was totally unknowledgeable of the project and sought to significantly
change the
conditions
and terms to better it's deal.
530.
HALCO did not a valid contract with the General Contractor
did not file a mandatory 20 day
notice
and could not file a valid Stop Notice. Pursuant to Civil
Code S 3098 & 3183.
531.
Defendants submitted a claim to the United States Government.
Defendants submitted claims to
the DPR
with the government agents knowingly paid false claims with
the intent to cover the fact that
it was
conspiring to pay Reverse False Claims on the U.S. government
if Federal Agencies are
defrauded
that are funded by the U.S. Treasury it is not relevant that
the State agencies and State
agents
can bind the government to fraud to impair there own responsibility
under the act. Otherwise
State
agents could "stick together to evade responsibility,
if we approve it can't be false". Congress
did not
intent during its long history of the False claims Act to
allow government officials knowingly
cheating
the government to give that agency or government agent immunity.
532.
Defendants submitted a invoice for a 600 volt breaker that
was not needed. GAVINE first
sought
an approval for the change order from Relator, however, this
outage was really staged in that
all other
changes were never authorized, if a formal change order was
approved by the Relator then
all other
change orders would have an approved effect which is what
the State agents were trying to
accomplish.
HALCO let this sham power outage go on for 7 days from March
8 to March 15, 2000
and so
did the government agents. A change order could not be effectuated
from a burnout at pull
box 9
but a bad switch that would have to be changed would . HALCO
and conspired with
government
agents in not solving the power outage problem in over a week
and yet Relator solved it
right
away. Once it was proven that it was not the switch , HALCO
did not have the right to charge
for the
breaker plus it was a "used" breaker Any power outage
was Halco doing, not the failure of
existing
equipment that is not to be replaced and if Halco was really
trying to fix the problem it would
of done
so in less than 2 hours instead of the 7 days that they spent.
533.
U.S. eventually payed for it.
534.
HALCO had knowledge that claim was False
535.
The claims could not have arisen from mistake or Negligence.
HALCO or ORUM false claims
could
not be mistake because it knowingly withheld a signed and
delivered contract that it had with
ACCENT
and was also sent to the surety company. HALCO was willing
to finally reveal the
contract
with ACCENT when it found out from Relator on February 2,
2000 at the Malibu Pier that
ACCENT
was in fact no longer on the contractors license, once HALCO
knew this they wanted to
then
give me the signed contract with ACCENT in exchange for the
document signed by ALBERTI
of the
CSLB. Deal was according to HALCO "we'll make an even
exchange" HALCO knew that
with
ACCENT being off the license that it would have to reveal
its false contract with ACCENT to
be recognized
by the Relator by not being replaced themselves.
536.
There are allegations with respect to Defendant ORUM in the
complaint. ORUM is then
President
of HALCO, ORUM is also the Responsible Managing Officer by
the CSLB no other
person
has control over the license for it's contracting activities.
537.
HALCO and corporate president ORUM both had constructive knowledge
that their contract
was illegal
and not valid there was absolutely no misunderstanding that
they were given fair notice of
there
contractual obligations. Halco relied on government agents
in collusion with Federicos to "stick
there
head in the sand" and continue knowing its contract to
be invalid. As evidenced by the fact that
it cancelled
all of its orders for equipment. However, It did not relinquish
control and had direct
contact
with government agents to procure change orders on a contract
for which it was not
authorized
or under written contract. This fraud of continuing unauthorized
change orders was
designed
to convolute the intended contract. Was not prohibited from
preforming on several
electrical
tasks under the contract plans and manual for the pier renovation,
however, it failed to do
so, irrespective
of the fact the other contractors were intentionally causing
a work slow down .
HALCO
was not prevented from all of its work in the two outer buildings
nor was it prevented from
doing
the intended work in the electrical room on the land side
of the pier, nor was it prevented from
providing
the proper new lights, supplying all the conduit and wire
non provided. GUNITE
purchased
the conduit, with its laborers installing it and HALCO billing
for it and GUNITE billing for
the labor
as well, a double charge on the government. The contract clearly
States that there shall be
no additional
charges to the government and that all work shall be included
in the cost of the bid
item.
HALCO'S change orders that were unauthorized by the contractor
were paid by the
government
with the government only receiving the value of less than
$8,000.00 in material and
labor.
The government officials knowingly approved false and "swollen"
invoices that were submitted
by David
Pasternak knowing them to be false. The government was relying
that the contract would
be faithfully
preformed to expedite the completion of the work. The government
then double paid for
the intended
work when John S. Meek company took possession of the pier
renovation in what the
government
officials called phase 2. This project was to take 4 months
instead with an obvious work
slow
down it took over a year and was not completed until all work
on the pier has come to a
complete
halt leaving substantial work uncompleted under the contract.
538.
October 6, 1999 Letter to HALCO Re: Letter of Intent and Scope
Attachment.
539.
Halco bid and Quotation to Bruce Darian dated May 18, 1999
by Kevin Shields total
$70,000.00.
540.
Payment Voucher pay est. #2 dated January 1, 2000 for HALCO
from ACCENT total
$3,500.00.
541.
HALCO pay estimate #3 $3,500.00.
542.
HALCO pay estimate #4 $3,500.00 dated March 1, 2000.
543.
Fax from HALCO to Bruce Darian September 14, 1999 regarding
Submittals.
544.
Letter to ORUM, HALCO from DPR dated December 20, 2000.
545.
Stop Notice dated December 12, 2000 by ORUM in the amount
of $89,210.00 to DPR dated
December
18, 2000.
546.
Letter to ORUM, HALCO from DPR dated December 20, 2000.
547.
Stop Notice dated December 12, 2000 by ORUM in the amount
of $89,210.00 to DPR dated
December
18, 2000.
548.
Memo to ACCENT from HALCO dated November 3, 1999 Re: Temp
Power.
549.
Memo to Darian/Accent dated January 25, 2000 from HALCO Re:
Budgetary Quotation total
$7,840.00.
BOOKOUT
550.
Invoice submitted purchase of capital equipment; a $2,500.00
Ridgid spline-cutting machine.
551.
No contract. Defendants do not have a valid contract with
the contractor of record. On
October
9, 1999, Relator informed BOOKOUT by certified mail that they
did not have a valid
contract
with the joint venture who was the contractor of record. Despite
the fact that BOOKOUT
had been
notified by Relator that they had no valid contract, they
presented invoices to be paid.
Specifically
$21,000.00, BOOKOUT submitted the specified invoices to ACCENT
with full
knowledge
that ACCENT would in turn submit those tainted invoices to
the State for payment as
evidenced
by David J. Pasternak court receiver making payments to BOOKOUT
in August of
2000,
and October of 2001 totaling $21,000.00. 31 U.S.C. 3729(a)(1)
552.
Failure to keep schedule. Defendant did not preform the work
on schedule and it was not
completed
per the contract specifications.
553.
HAROLD BOOKOUT conspired to defraud by an agreement with ACCENT
and GUNITE
to injure
Relator by furthering the above-referenced defendants' scheme
to have Relator removed
from
the job and allow the common enterprise of fraudulently acquiring
payment from the
government
for illegal and substandard work. This furthered the larger
enterprise of the mass
development
of MALIBU CITY, Malibu Pier Project and profiting from the
destruction of the
environment.
554.
BOOKOUT knowingly conspired with ACCENT and GUNITE to submit
a bid for a
substantially
higher amount of money than the original bid. Agreed with
ACCENT to submit claims
to the
government for reimbursement for the purchase of materials
that were never paid for by
BOOKOUT.
Additionally, BOOKOUT agreed with ACCENT to purchase expensive
equipment
and billing
the government for the purchase under the guise of materials.
BOOKOUT then used the
equipment
for future pecuniary gain.
555.
The over acts were carried out in furtherance of the single
plan to bilk the government out of
funds
partially supplied by the federal government with the shared
objective of profiting from the
larger
enterprise of the mass development of MALIBU CITY, the pier
Project and the destruction of
the environment.
556.
Relator was injured by BOOKOUT'S actions in furthering the
enterprise of fraudulent billing,
mass
development and environmental damage by depriving Relator's
business of the profit from the
Project
and allowing other companies an unfair competitive advantage
over Relator's business due to
the damage
to Relator's business reputation.
557.
Bid-rigging. Defendants colluded with other subcontractors
and made up their own pricing not
approved
by the contractor of record.
558.
Did not have fiberglass brackets four months into the project.
Inspector GAVINE could not
understand
why the special brackets that were specified to hold the water
line to the hand rail still
were
not at the jobsite well past the time allotted to complete
the project.
559.
The brackets didn't allow for expansion. Relator had thoroughly
discussed with the defendant
special
expansion couplers and other means of securing the pipe to
allow for full sprinklers under the
pier.
560.
Expansion brackets not ordered. Defendant, dealing with GUNITE,
intentionally stalled,
notifying
engineers of the necessity to exploit additional time and
stall the project.
561.
Dealing directly with State officials. Defendant provided
pricing directly to State engineers for
the changing
of the existing gravity feed sewer to a forced (pump) sewer
with a pump station on
down
coast side at bent 35.
562.
Dealing to procure change order without authorization. Defendants
and engineers negotiated
change
orders without the contractors knowledge or authorization.
563.
Not maintaining hydrants to full capacity. The contract documents
specify that the 4" existing
fire
line was to stay energized at all times during construction,
with the exception of the completed
new fire
pipe to be connected to the new backflow valve. Instead, defendant
repeatedly shut down
the water
to accommodate the other contractors with their entirely ineffective
operation.
564.
Change orders were not approved. Defendant's change orders
were a violation of the contract
documents
that specify there will be no additional compensation for
plumbing work in the item price
of the
contract.
565.
Shut water down several times.
566.
BOOKOUT and HAROLD BOOKOUT its president falsified their certified
payroll by not
employing
and paying journey level workers which is a material part
of the contract documents. 31
U.S.C.
3729(a)(1)(2)(5)
567.
HAROLD BOOKOUT gave Relator an agreed price of $2,500 to install
1 backflow valve
new 4"
water pipe to the shore area from the wall and install new
stand pipe hydrants. Relator had
the contract
with the DPR and was providing the Material that was purchased
by Relator from
Familian
Pipe Supply. BOOKOUT wanted Relator to sign an agreement that
would give
BOOKOUTthe
Pier renovation work or the price would increase to $5,000.00
with another
$2,500.00
being owed to BOOKOUT if the renovation contract did not go
to him. This modified
agreement
came from BOOKOUT after the agreement was made to do the water
line work for
Relator
and the materials were already purchased and a signed contract
with the State. Relator
agreed
to the increase if BOOKOUT would agree to a firm price to
do the new plastic water line
installation.
It was agreed by Relator and BOOKOUT'S supervisor Mike and
HAROLD
BOOKOUT
that the work would be done for a flat 10,000.00 and Relator
would provide the
material
to the job. Relator had secured a price of $3,000 for the
pipe and was allowing another 800
for hardware
all other money was to stay to the contractor. R.R. FEDERICO
not ever being a
qualifier
on a contractors license or being a contractor as a result
of qualified work experience and
knowledge
of the license law found out from Relator what the price was
and sent BOOKOUT a
contract
for 13,800. For the work complete. BOOKOUT rejected this price
and both saw it as an
opportunity
to increase BOOKOUT'S contract amount and substantially inflate
the cost of the pipe
and other
material to more than $9,500.00 and create a new price that
was $21,000.00 including a
$2,500.
"Ridgid" spline cutting machine. However, since
BOOKOUThad not the machine or
worked
with "Yellowmine" plastic pipe an $80.00 Milwaukee
router would have cut the groves as
precision
and the other machine for the splines to go into to connect
the pipe. ACCENT and
BOOKOUT
both sought to have the government pay for this capital gain
of equipment. Accent
Builder's
has done the same in submitting for payment several thousand
dollars in. 31 U.S.C.
3729(a)(1)(5)
568.
HAROLD BOOKOUT did provide an insurance policy naming Darian
Construction Co. as an
additional
insured, however, this certificate does not cover the contractor
of the pier renovation and
thus
it is unenforceable.
569.
October 6, 1999 ACCENT to BOOKOUT - Letter of Intent Scope,
Attachment A.
570.
BOOKOUT proposal dated May 20, 1999 $21,800.00.
571.
BOOKOUT payment voucher pay est.#3 amount $3,160.00 February
1, 2000.
572.
BOOKOUT payment voucher pay est. #4 amount $3,160.00 March
1, 2000.
573.
BOOKOUT fax to Bruce Darian dated October 12, 1999 (A) HAROLD
BOOKOUT
received
Relator's fax sent on October 10, 1999 and certified letter
and faxed Accent Builder's
contract.
Elaine Bookout wanted to know who R.R. FEDERICO was and faxed
the entire contract
including
ACCENT falsified time schedule. R.R. FEDERICO fraudulent representations
included
ACCENT
letterhead to HAROLD BOOKOUT, "Subj" Transmittal-
Subcontract Agreement It
reads
in part "Please find enclosed an original and copy of
your subcontract agreement for the
aforementioned
project. Please endorse and return both copies. If you have
any questions please
contact
immediately." and Please insure that all insurances as
required by the contract documents are
in place
prior to the start of your work." HAROLD BOOKOUT never
provided insurance for
workers
compensation or liability insurance naming the contractor
as an additional insured. R.R.
FEDERICO
told Relator at the Malibu Pier on December 14, 1999 that
all of the contracts are
signed
and with the bonding company, on information and belief the
surety company AIG and
NATIONAL
UNION were in conspiracy with these tainted and collusive
documents .
574.
Copy of envelope from GUNITE to BOOKOUT faxed October 12,
1999 (A) HAROLD
BOOKOUT
received a contract from ACCENT with a GUNITE envelope, ACCENT
and
GUNITE
fraudulently represented that they were the sole contractor
for the job. (B) Both
HAROLD
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