AN OFFICE OF the Inspector General investigation found that 10 more companies working with the Philadelphia Housing Development Corp. had been using a sham subcontractor to meet minority-participation requirements.
The prime contractors made it appear as if JHS and Sons Supply Co., a minority-owned firm, was getting a substantial portion of the business. In fact JHS was just acting as a "pass-through" for the money to get to another company, William Betz Jr. Inc., that was actually doing the subcontracted work. In all, Betz received $640,000 intended for minority-owned businesses. JHS was paid at least $70,000 for the use of its name.