Opinion ID: 3051091
Heading Depth: 2
Heading Rank: 3

Heading: Ferguson-LT Enterprise

Text: Defendants Ferguson and LT formed an enterprise (the “Ferguson-LT enterprise”) to (1) fraudulently procure and maintain defendant LT’s SBE certification from the County, (2) allow defendant LT to receive SBE bid preferences and win project awards from the County, and (3) allow defendant 4 Case: 13-13284 Date Filed: 02/07/2014 Page: 5 of 18 Ferguson to make sales through defendant LT to the County. In the Ferguson-LT enterprise, defendant LT was a mere conduit who performed no commercially useful business function. As such, defendant LT was ineligible for SBE status. To obtain defendant LT’s SBE certification, defendants Ferguson and LT executed their fraudulent scheme by (1) soliciting false and misleading letters from product manufacturers, (2) preparing false affidavits, (3) altering and falsifying manufacturers’ product packing slips, and (4) repeatedly submitting these false documents to the County. Defendants Ferguson and LT used the United States mail and interstate wires to accomplish these acts. The County relied on defendants Ferguson and LT’s false documents and approved defendant LT’s application for SBE certification. Defendant LT’s SBE certification gave defendant LT the benefits of the County’s SBE Program, including the 10% bidding advantage. As a result of defendant LT’s 10% SBE advantage, the County awarded defendant LT multiple supply contracts. If defendant LT had not been certified as an SBE, the County would have awarded these contracts to plaintiff Corcel because plaintiff Corcel was the next lowest SBE bidder. 5 Case: 13-13284 Date Filed: 02/07/2014 Page: 6 of 18