Categories: Chicago

Fraudulent charges for construction company owner

A construction company owner has been indicted for allegedly fraudulently obtaining Chicago Housing Authority contracts. The owner obtained contracts worth more than $2.75 million designed to benefit minority-owned businesses. Lester Coleman owned Coleman Development Corp. The company is a based construction company and a certified minority-owned business.

According to the indictment returned Tuesday in U.S District Court in Chicago, Coleman, from 2010 to 2018, falsely represented to the CHA that his company would perform construction work sufficient to satisfy the agency’s minority-owned business requirements. The requirements mandated that minority or women-owned enterprises should perform a certain percentage of work on CHA properties.

The indictment states that Coleman had given that work to a company that was not certified as a minority-owned business. The indictment also states that Coleman had obtained more than $2.75 million in payments from the agency’s contracts. The contracts also included construction or rehab on properties in the Chicago neighborhoods of West Ridge, North Park, Albany Park, Archer Heights, and Oakland.

The charges also allege that Coleman had falsely represented and certified to the CHA that prevailing wages were paid to thru employees performing the work, mandated by federal labor law, but they were not paid. The indictment charges Coleman with three counts of wire fraud.

John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Elissa Rhee-Lee, Inspector General of the CHA; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago announced the indictment. Assistant U.S. Attorney Stephen Heinz represented the government.

Gabriella Remillard

Staff writer for the Chicago Morning Star

Recent Posts

Chicago Fire Department Welcomes 70 New Graduates

Chicago Mayor Brandon Johnson and Fire Department Commissioner Annette Nance-Holt on Dec. 5 marked the graduation of 55 Firefighter EMTs…

1 day ago

Chance the Rapper to Headline Chicago’s New Year’s Eve

Chicago will serve as the Central Time zone broadcast hub for “Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest…

2 days ago

U.S. Soccer Announces Format for 2026 U.S. Open Cup

U.S. Soccer has released the full format, schedule, and participating teams for the 2026 Lamar Hunt U.S. Open Cup, outlining…

3 days ago

Chicago Proposes First-in-Nation Social Media ‘SMART Tax’

Chicago Mayor Brandon Johnson has introduced a new tax proposal targeting major social media companies as part of his effort…

4 days ago

Chicago Teachers Union, CPS Reach $1.5B Deal Without Strike

The Chicago Teachers Union and Chicago Public Schools have reached a $1.5 billion, four-year contract that will shape classrooms across…

5 days ago

Early Bird Flu Surge Hits Europe, North America Hard

Europe and North America are confronting an unusually early and intense surge of bird flu, with outbreaks spreading across wild…

5 days ago

This website uses cookies.