State Report: Francis Liable for More Than $330K
July 28, 2016 at 4:25 p.m.
By Kaitie Vanderpool-
Francis was initially alleged to have overbilled the city by approximately $250,000 during a storm sewer line repair project. The report states the amount, including other invoices as well as state investigation costs, now totals $333,733.88.
According to the report, from Jan. 1, 2011, to Dec. 31, 2013, the City of Warsaw paid to have various storm sewers lined by contractor ProForm Pipe Lining Co., Mishawaka. The lining work was billed and paid based on quoted prices per lineal foot, and estimated lineal footage was provided by Francis.
ProForm billed the city for the full amount of Francis’ estimate.
In Dec. 2013, a former ProForm employee contacted the Warsaw clerk-treasurer and alleged that ProForm had been intentionally overbilling the city. The former employee indicated the overbilling included charging for more sewer lining than was actually installed.
Following these allegations, a city engineer collected all quotes, agreements and accounts payable vouchers with attached invoices pertaining to payments to ProForm. The engineer was able to calculate the actual length of sewer that was lined for each project to within about five feet.
Based on these calculations, the amount of footage billed to the city exceeded the actual footage by 59 to 229 feet per project, to total 1,638 feet.
In another instance, the city was billed for lining 175 feet of sewer that only measures 75 feet and was never actually lined.
Based on the quoted prices per lineal foot for the projects, the city overpaid ProForm $267,569 over a three-year period.
Ten out of 11 accounts payable vouchers for payments to ProForm were signed by Francis, certifying that the attached invoices were true and correct and that itemized materials or services were ordered and received.
Francis, along with two senior employees at ProForm, were arrested March 25 on charges including corrupt business influence; theft; aiding, inducing or causing theft; providing false information to governmental entities to obtain a contract; official misconduct; and conflict of interest.
According to documents obtained by a search warrant, there were 12 invoices with amounts to be paid back to Francis in even thousands of dollars that appeared to be based on the amount of the invoice. The total payback for the invoices was $22,000, projected to an additional 22 city paid invoices for an additional payback of $29,000.
The total $51,000 overpayment on these time and material invoices was added to the $267,569 overpaid on sewer lining work, coming to a total of $318,569 in overpayments by the City of Warsaw.
According to the report, the State of Indiana also incurred additional costs of $15,164.88 related to the investigation of overpayments, bringing the total Francis is liable for to $333,733.88.
Francis is scheduled for a pre-trial conference Sept. 29 at 3 p.m.[[In-content Ad]]
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Francis was initially alleged to have overbilled the city by approximately $250,000 during a storm sewer line repair project. The report states the amount, including other invoices as well as state investigation costs, now totals $333,733.88.
According to the report, from Jan. 1, 2011, to Dec. 31, 2013, the City of Warsaw paid to have various storm sewers lined by contractor ProForm Pipe Lining Co., Mishawaka. The lining work was billed and paid based on quoted prices per lineal foot, and estimated lineal footage was provided by Francis.
ProForm billed the city for the full amount of Francis’ estimate.
In Dec. 2013, a former ProForm employee contacted the Warsaw clerk-treasurer and alleged that ProForm had been intentionally overbilling the city. The former employee indicated the overbilling included charging for more sewer lining than was actually installed.
Following these allegations, a city engineer collected all quotes, agreements and accounts payable vouchers with attached invoices pertaining to payments to ProForm. The engineer was able to calculate the actual length of sewer that was lined for each project to within about five feet.
Based on these calculations, the amount of footage billed to the city exceeded the actual footage by 59 to 229 feet per project, to total 1,638 feet.
In another instance, the city was billed for lining 175 feet of sewer that only measures 75 feet and was never actually lined.
Based on the quoted prices per lineal foot for the projects, the city overpaid ProForm $267,569 over a three-year period.
Ten out of 11 accounts payable vouchers for payments to ProForm were signed by Francis, certifying that the attached invoices were true and correct and that itemized materials or services were ordered and received.
Francis, along with two senior employees at ProForm, were arrested March 25 on charges including corrupt business influence; theft; aiding, inducing or causing theft; providing false information to governmental entities to obtain a contract; official misconduct; and conflict of interest.
According to documents obtained by a search warrant, there were 12 invoices with amounts to be paid back to Francis in even thousands of dollars that appeared to be based on the amount of the invoice. The total payback for the invoices was $22,000, projected to an additional 22 city paid invoices for an additional payback of $29,000.
The total $51,000 overpayment on these time and material invoices was added to the $267,569 overpaid on sewer lining work, coming to a total of $318,569 in overpayments by the City of Warsaw.
According to the report, the State of Indiana also incurred additional costs of $15,164.88 related to the investigation of overpayments, bringing the total Francis is liable for to $333,733.88.
Francis is scheduled for a pre-trial conference Sept. 29 at 3 p.m.[[In-content Ad]]
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