Nov 13, 2014 1 min read

The owner of a Finleyville construction company pleaded guilty Wednesday in federal court after he allowed his firm to be used as a front for contractors seeking work through a minority set-aside program.

Watson L. Maloy Jr., 74, president and owner of WMCC, Inc., 5052 Don St., pleaded guilty to conspiracy to defraud the U.S. government on federally funded highway projects for the state Department of Transportation and the Pennsylvania Turnpike Commission.

Maloy’s firm, which is designated as a disadvantaged business enterprise, entered into 13 minority-set aside subcontracts with Century Steel Erectors of Dravosburg worth $2.34 million between January 2012 and February.

Maloy and two co-conspirators, the president and controller of Century Steel, conspired to use WMCC as a front company to obtain profits from the disadvantaged programs, court documents said. WMCC was paid at total of $1.89 million as a result.

Century Steel completed the work on the job while Maloy’s firm performed no useful function, court documents said.

No one else has been charged in the case. A sentencing date is scheduled for March 6. Maloy faces 5 years in prison and a $250,000 fine.