05/05/11 Crony Capitalism
Giant construction firm Tutor-Perini had $8.5 billion in revenue the last two years. The California-based company has received billions of dollars in public works projects at the state and federal level.
But several divisions of the company have faced fraud and improper billing allegations since the 1990s. A typical claim is the company underbids competition then makes up the difference in exorbitant cost overruns.
Only weeks ago, a division president was convicted of fraud and conspiracy to launder money involving contracts in New York.
Despite its sketchy history, the company continues to receive hundred million dollar deals from government.
One reason may be Dianne Feinstein [D-CA]. She’s California’s senior U.S. Senator. She has sat on the Senate Appropriations, Armed Services and Intelligence committees. She is also the wife of Richard Blum. Blum owns Tutor-Perini.