This story caught my eye in the Plain Dealer Business section today 09/05/08.
CARBONE GOES TO COURT IN EFFORT TO REORGANIZE
Contracting and project management company Carbone Cos. Inc. filed for Chapter 11 bankruptcy protection Thursday, saying it has $22 million in debt and $32 million in assets.
"The filing was made so that we can reorganize the continuing operation of our constrution management business while giving us the time and forum necessary to restruture certain real estate business segments and develop a debt restructuring plan,"Chief Executive Officer Ross P. Carbone said in a news release.
Founded as a general contracting company in Cleveland in 1926, Carbone has expanded over the years into property management and other fields. The company blamed its problems on its real estate wing, most notably the Audubon Hotel, a New Orleanslandmark damaged by Hurricane Katrina in 2005.
Over the past few years, Carbone has eared headlines more for its legal problems than for its construction projects.
In July, the FBI and IRS raided Cuyahoga County offices, in part, to answer questions about how Cuyahoga County awarded Carbone a $10 million 2006 contract to renovate the Ameritrust Bank complex into a county headquarters building.
In April 2006, commissioners Jimmy Dimora, Peter Lawson Jones and Tim Hagen unanimously ranked a team led by the company's contracting arm, R.P.Carbone Co. as their top choice for that project after less than 50 seconds of public deliberation.
Also in July, Vincent Carbone, former president of R.P.Carbone Co., pleaded guilty to conspiracy and money laundering for paying more than $200,000 in bribes in 1999 to get work on the Lorain County Justice Center.
As part of this senence, Carbone will pay restitution of $314,000 which includes $80,000 for the cost of the investigation.
A major player in public projects in Northeast Ohio, Carbone's clients have included Cleveland State University, several school districts and Cuyahoga County.
Seems like Vincent's chirping like a canary, to keep his but out of the slammer, Madpotter, tried to tell us this story months ago. The only question I have for the School Board if you had known this in the first place,would you still have awarded them the New School contract? Why wasn't the public inforned about these allegations.