Philly gets settlement from company that used minority business front

A prime contractor with the City of Philadelphia will pay $1.85 million to settle a fraudulent deal.

The city’s Office of the Inspector General found Prison Health Services, now known as Corizon Health, Inc., entered into a contract with the city and subcontracted JHK for the use of the JHK name and its woman-owned business certification.

“Many disadvantaged yet qualified small business are still struggling to keep people on payroll,” Philadelphia Inspector General Amy Kurland said of the case. “We’re committed to leveling the playing field here in Philadelphia so all businesses can compete for City contracts and create jobs for talented minority-, women- and disabled-owned businesses.”

 

PHS used the subcontract to imply to the city that JHK has provided pharmaceutical supplies to the Philadelphia Prison System. In fact, PHS only use the name and certification of the women-owned company and paid JHK one percent of the total city contract value to make it seem as though JHK was supplying the materials.

PHS never notified the Office of Economic Opportunity of its subcontract terms, as is the requirement of the city’s anti-discrimination policy.

In addition to the settlement, the city has removed JHK from the Office of Economic Opportunity registry and has begun the process of disbarring the business.

WHYY/NewsWorks’ Dave Davies will have more details on this investigation and settlement.