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Two Men Charged in DBE Program Fraud
Buffalo, NY – In a shocking case of corruption, two men have been indicted for conspiring to defraud the government out of millions of dollars through the Disadvantaged Business Enterprise (DBE) Program.
David Pfeiffer, 64, of Killbuck, NY, and Thomas Colton, 53, of Salamanca, NY, have been charged with conspiracy to commit mail fraud and mail fraud, with Pfeiffer also facing charges of making a false statement to a financial institution. The charges carry a maximum sentence of 30 years in prison and a $1,000,000 fine.
According to the indictment, Pfeiffer and Colton conspired to defraud government agencies, including the U.S. Department of Transportation, the New York State Department of Transportation, and the City of Niagara Falls, NY, out of at least $15,500,000. The indictment alleges that they used Colton’s business, Sue-Perior Concrete and Paving, Inc., as a subcontractor on federal government contracts to allow Pfeiffer’s construction company, Man O’ Trees, to obtain government contracts that it would have otherwise been unable to obtain.
The indictment also alleges that Sue-Perior was qualified as a DBE by the Niagara Frontier Transportation Authority (NFTA) based on a fraudulent application submitted by Pfeiffer and Colton. As a result, they allegedly obtained government construction contracts for three projects, including the New York State Route 104 Project, the Union Ship Canal Project, and the Gallagher Beach Project.
The investigation was conducted by the Department of Transportation, Office of Inspector General, the U.S. Department of Labor, Office of Inspector General, and the Federal Bureau of Investigation. The indictment is the culmination of a lengthy investigation that uncovered a complex web of corruption and deceit.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer and released on bond. The fact that a defendant has been charged with a crime is merely an accusation, and they are presumed innocent until proven guilty.
Assistant U.S. Attorney Russell T. Ippolito, Jr. is handling the prosecution, and the case is being led by U.S. Attorney William J. Hochul, Jr.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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