Guilty pleas entered in federal corruption case

Local News

DAYTON, Ohio (WDTN) – Two corporations entered guilty pleas in U.S. District Court Friday for conspiring to commit mail fraud.

Steve Rauch, Inc. and Green Star Trucking, Inc. admitted they conspired during the summer of 2014 to submit false paperwork to the City of Dayton for demolition contract payments.

According to court documents, Steve Rauch, Inc. accepted a contract with the city that required the company to sub-contract a set portion of the work to a certified disadvantaged business such as a small business or a woman-owned business. In this instance, the certified disadvantaged business was Green Star Trucking, Inc.

Prosecutors said Steve Rauch, Inc., knowing it had not satisfied the requirements on its demolition project, contacted Green Star and asked that Green Star falsely certify it had completed and been paid for several thousand dollars’ worth of additional work on the project. Green Star agreed and signed the false paperwork that Steve Rauch, Inc. then sent to the city.

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