Federal authorities are investigating two companies that charged the city of San Diego $9.4 million to haul away the remains of over 100 homes charred by wildfires two years ago.
A.J. Diani Construction Co. of Santa Maria and Watsonville-based Granite Construction Co. are the subjects of the criminal probe by the Office of the Inspector General for the U.S. Department of Homeland Security.
In a series of reports, the San Diego Union-Tribune found that Diani and Granite removed questionable quantities of debris, overcharged for materials, billed for work they didn’t perform and provided receipts that didn’t back up their charges.
Granite says it is cooperating with the government. A spokesperson for Diani could not be reached for comment.
If investigators find criminal fraud, taxpayers could recoup some of the money paid to the companies.
Was this article valuable?
Here are more articles you may enjoy.
Hedge Funds Make Their Move as Litigation Finance Assets Slump 
High-Powered Dads Are Spending Less Time at Work, More on Childcare 
Uber and FedEx Get Green Light for Racketeering Suit Against Lawyers, Doctors 
Most Are Overcharged for Property Insurance, Vanderbilt Study Says 
