PORTLAND, OREGON – CITY HALL – On March 25, 2015, the Oregon Department of Justice entered into an agreement with former City subcontractor, Elkins Masonry Restoration, Inc., requiring it to relinquish its State certification as a minority- and women-owned business enterprise and to pay $15,000 to settle the State’s allegations under the Oregon False Claims Act. Elkins denied any wrongdoing or liability.
An investigation into Elkins began in 2013 with a complaint to the City of Portland’s Office of the Ombudsman, a division of the elected Auditor’s Office. The Ombudsman conducted a preliminary investigation and found evidence that appeared to show that Elkins may have acted as a pass-through for a non-certified firm on construction projects funded by the Portland Housing Bureau. The Ombudsman referred the case to the Oregon DOJ for further investigation.
“Subversion of the City’s social equity contracting program undermines efforts to reverse historic discrimination and deprives bona fide minority- and women-owned businesses of work on City projects,” said Ombudsman Margie Sollinger. “The City is committed to ensuring the integrity of its program and has spearheaded state legislation that gives it additional enforcement authority to address alleged fraud.”
The Office of the Ombudsman would like to thank the construction industry whistle-blowers for coming forward, Commissioner Dan Saltzman for referring the initial complaint, and the Oregon DOJ for bringing closure to this case.