Federal search warrant executed at building housing contractors that have landed big government contracts

MILWAUKEE -- The FBI was among a handful of agencies executing a search warrant at a business near 55th and Florist in Milwaukee on Wednesday, August 3rd. Agents with the Department of Defense, the Department of Veterans Affairs, the U.S. Small Business Administration, the U.S. Army CID and the General Services Administration for the U.S. government were among those on hand to investigate allegations of fraud.

Boxes of evidence were hauled out of the building near 55th and Florist in Milwaukee. The big question now is -- why?

Federal search warrant executed at 55th and Florist in Milwaukee

FOX6 News saw law enforcement officials going in and out of the building near 55th and Florist all day. They said while there is no threat to the public, this is still, potentially, a big deal -- possibly involving more than $100 million in government contracts.

"We saw one man and it said FBI on his shirt," Sandy Lackershire said.

The allegations have to do with fraud against the government, FOX6 News is told.

Federal search warrant executed at 55th and Florist in Milwaukee

"What's taking place here is a multi-agency investigative search warrant," Clayton Wible, supervisory special agent with the FBI said. "It's broader in scope than this. This is one of a couple search warrant locations, and there are a number of other interviews going on in relation to the case as a whole."

Federal search warrant executed at 55th and Florist in Milwaukee

FOX6 News has learned more about the tenants of that building at 55th and Florist. All are general construction contractors, and most have landed millions in federal projects.

Work has included construction at VA hospitals and maintenance on federal buildings in several branches of the military.

Federal search warrant executed at 55th and Florist in Milwaukee

C3T Inc. is a general carpentry contractor that has landed more than $200 million in government work, according to online records.

Sonag Company Inc. won more than $100 million in work.

Online records show Nuvo Construction has also made millions.

Federal search warrant executed at 55th and Florist in Milwaukee

The president of a fourth tenant, Pagasa Construction said her business does not do government work.

It's unclear which businesses were targeted when this search warrant was executed Wednesday, but Pagasa's president said it appeared everyone in the building was questioned Wednesday. She said she's not happy, telling FOX6 News her business has nothing to do with the investigation. She said agents were "fishing for evidence."

She said she likely lost a bid because she couldn't get into her office Wednesday.

Many of these companies have a leg up when it comes to winning federal contracts because they're minority owned or they're owned by disabled veterans.

At the scene Wednesday, federal investigators said in cases similar to this, businesses are often found to be participating in programs they are not eligible for, or they lie on government forms.