Over two years ago, the city of Chicago banned the construction company, Joel Kennedy Constructing Corp. (JKCC) from ever being allowed to work on or receive any city contracts. Fast forward to the present day: the construction company has skirted the ban and is working on projects in the city under government projects.
Construction Company’s Past
In April 2021, the city placed the disbarment on the company after City Hall’s investigation found they cheated Chicago out of millions of dollars by falsifying records. At that time, the construction company was in control of the founder Joel Kennedy.
Moreover, Kennedy was not happy with City Hal’s decision and claimed it would ultimately put his company out of business. He planned on trying to persuade City Hall in dropping the ban. 
Inspector General Joseph Ferguson’s office conducted an investigation into the construction company after a whistle-blower alerted them to the falsified payroll records.
The fake documents made it appear the company was in compliance with city ordinance requirements on at least four contracts.
Repercussions of Lying
After banning the construction company, the United States, the state of Illinois, and the city of Chicago filed a lawsuit against Joel Kennedy Constructing Corp. The lawsuit was filed on Feb. 7, 2022.
Furthermore, Relator Angelo Milazzo provided information alleging JKCC engaged in frauding the city in six contracts. Milazzo was an employee of the construction company from 1987 to 2015. As such, he held various senior positions, including:
- Corporate secretary/treasurer.
- Project manager.
- Engineer.
- And head estimator.
Additionally, he owned 10% of JKCC until 2011.
In 2017, Milazzo filed a “Qui tam” action which permits private individuals to sue on behalf of the U.S. to recover money that was fraudulently obtained by a person or corporation. Two years later, the city of Chicago intervened to join forces in collecting the money the construction company fraudulently took.
Skirting Around the Ban
Earlier this year, Lincolnwood announced that Joel Kennedy Constructing Corp. had been contracted by the Metropolitan Water Reclamation District of Greater Chicago to replace a sludge pipe in Centennial Park, 6801 North McCormick Boulevard.
The first section of the project ran from McCormick to Lincoln Avenue. Second, they will replace the section of pipe running from Lincoln to Crawford Avenue. The final section runs from Crawford to Cicero.
Moreover, the village of Lincolnwood stated each phase of the project will take roughly two to three months to complete. Interim Lincolnwood Public Works director Mike Reynolds stated, “There will be open digging probably every 50 feet and boring every several hundred feet and they will pull the pipe and replace it going from hole to hole (on Devon).”
Views on the Construction Company’s Skirtment
Metropolitan Water Reclamation District of Greater Chicago’s spokeswoman, Allison Fore, stated that the sewage-treatment agency “does not abide by the city’s debarment list.”
Last year, the construction company was awarded a $27.5 million contract to replace the water reclamation district’s sludge pipeline that runs along the Skokie Northshore Sculpture Park.
Not believing the awarded contract was in the best interest of the public, Commissioner Cameron Davis was one of the three who objected.
I didn’t believe we should be giving a contract to a firm with a history of fraud. They bid lower than anybody else. What good is having a low bidder if there’s a history of fraud?
By Sheena Robertson
Sources:
Chicago Sun-Times: Banned by City Hall for lying on construction contracts, company is still getting government work
NADIG Newspapers: MWRD sludge pipeline replacement project planned for Devon Avenue
Case Text: United States v. Joel Kennedy Constructing Corp.
Chicago Sun-Times: Company that got nearly $300M in city contracts banned for lying that workers lived in Chicago
Top and Featured Image Courtesy of Chicago Transit Authority’s Flickr Page – Creative Commons License
Inset Image Courtesy of artistmac‘s Flickr Page – Creative Commons License
