Milwaukee – The Milwaukee Journal Sentinel (MJS) recently reported that a south side Latino construction firm is under a Federal investigation for possibly setting up a scheme in order to land $268 million in government contracts by fraudulently claiming they are owned by minorities and military veterans.
A 48-page affidavit for a federal search warrant explains the fraud scheme “involving a web of interconnected companies set up with phony minority and veteran owners to snag lucrative contracts”, according to the MJS report.
The companies involved include Nuvo Construction, C3T, Pagasa Construction, Sonag Company and an accounting firm that did work for all four firms, LJM Accounting Services.
The owner of LJM Accounting Services home was the target of federal search warrant allowing federal agents to search the Menomonee Falls home office of Lori Michaud, owner of the accounting firm.
Sonag Company is located on Milwaukee’s near Southside and is the center piece of the federal investigation. The company is owned by Brian Lee Ganos (Sonag backwards) a member of the Board of Directors of the Hispanic Chamber of Commerce (HCCW). Ganos is also nephew to former HCCW CEO Maria Cameron who retired from HCCW a little over a year ago.
The federal investigation has been ongoing for over four years and is just now issuing charges and search warrants looking into the contract dealings of Sonag Company.
Federal agents are also investigating Nuvo Construction, C3T, Pagasa Construction, which were created by Brian Ganos and his partner who is also being investigated, James Edward Hubbell.
The charges Ganos and Hubbell as well as others face include, crimes of major fraud against the government, conspiracy, making false statements, money laundering among other offenses.
MJS reports that “in 2014, a former longtime employee approached federal agents and described the fake ownership created for the various companies”.
