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An indicted North Haven business under contract to provide services for the Stamford Urban Transitway has Board of Finance members concerned about how monies are being spent for the project. The board's Audit Committee will try to ferret out the facts at a meeting Thursday, Sept. 2, at 6 p.m. in the BOF's fourth-floor meeting room.
"We need to approach Phase 2 of the project in a little different manner," said BOF Chair Joseph Tarzia. "There are still some serious questions that have been raised about the contractor."
That contractor is Earth Technology, Inc. The company, owner Frank M. Ruocco Jr. and project manager Boris A. Tomicic were indicted last September on federal charges alleging inflated invoices were submitted for soil and other items removed for a New York shopping mall project. The 19-count indictment includes charges of money laundering, conspiracy, mail fraud and wire fraud.
Additionally, Connecticut Attorney General Richard Blumenthal has been looking into allegations that two Connecticut DEP employees received favors and gifts from Ruocco in exchange for state contracts.
In 2006, Anthony Richardi, the president of Earth Technology II, a Hamden business that Ruocco founded and formerly co-owned, pleaded guilty to charges of overbilling a Derby business for environmental cleanup.
After two failed tries, the Board of Finance voted earlier this month to release $4.83 million in funding to complete the first phase of the Transitway.
"I think it warranted our concerns and questions, but I didn't feel we should delay the project," said Tarzia.
But questions raised during the extended process of discussions and aborted funding attempts promise to open a floodgate of inquiries regarding the project's next phase.
"The second phase doesn't necessarily mean it will be with the same contractor," Tarzia said.
Ruocco did not acknowledge a telephone inquiry seeking comment.
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