Sidewalk Repair Scam: Hudson County Man Pleads Guilty

A Hudson County contractor has pleaded guilty to conspiring with another contractor and a federal inspector to rig the selection process for the Union City Community Development Agency, including various home improvement and sidewalk replacement projects.

According to the United States Attorney’s Office of New Jersey:

The scheme involved Stanley Parzych, 62, of Jersey City, the owner of American Construction, Joseph Lado, the owner of Lado Construction, and a federal inspector with the Union City Community Development Agency (UCCDA), a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal block grant.

Together, the three conspired to rig the competitive process to perform sidewalk replacement projects and residential rehabilitation projects in favor of certain contractors, including Lado Construction, by submitting false and materially misleading proposals.

On multiple occasions, Parzych provided Lado with phony proposals from American Construction that were higher than Lado’s proposals. Sometimes he provided Lado with blank proposal forms from American Construction, which Lado later completed listing amounts that were higher than Lado Construction’s proposals for the same work.

Lado would then submit American Construction’s phony higher-priced proposals and his own proposals to the UCCDA in order to obtain projects, and ultimately, HUD grant funds, from the UCCDA for the completion of the projects.

Altogether, the scheme caused losses of at least $40,000, authorities claim.

The conspiracy charge to which Parzych pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Parzych is scheduled to be sentenced on Oct. 7.