- Associated Press - Monday, March 14, 2016

SYRACUSE, N.Y. (AP) - A Syracuse-based construction contractor has agreed to pay $5 million to resolve allegations that it improperly exploited federal contracting opportunities reserved for small businesses owned by disabled military veterans.

According to the settlement, the now defunct company 229 Constructors LLC registered in 2009 with its majority owner a service-disabled veteran, who was an employee of Hayner Hoyt Corp.

Authorites say he oversaw Hayner Hoyt’s tool inventory and plowed snow from its property.

Federal authorities say 229 Constructors provided more than $1.3 million in subcontracts to Hayner Hoyt and affiliates LeMoyne Interiors and Doyner Inc., which generated about $297,000 in gross profits as a result.

The investigation was triggered by a whistleblower lawsuit. The whistleblower will get $875,000 of settlement proceeds.

A call to the company was not immediately returned.

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