Willowbrook Woman Gets a Year for Chicago WBE Scam

CHICAGO – Elizabeth Perino, 62, of Willowbrook, Illinois, is headed to federal prison after being sentenced to a year and a day for her role in a brazen scheme to defraud the City of Chicago’s Women-Owned Business Entity (WBE) procurement program. The sentence, handed down Thursday by U.S. District Judge Gary Feinerman, marks the culmination of a federal investigation into the manipulation of city contracts.

Perino, the owner of Perdel Contracting Co., a certified Women’s Business Enterprise, knowingly allowed her company to be falsely listed as a subcontractor on multiple Chicago construction projects. The arrangement, prosecutors proved at trial, was a calculated effort to help a general contractor meet its mandated female hiring requirements without actually employing any women from Perdel. Perino falsified documentation to conceal the fact that Perdel performed no legitimate work on these projects, effectively becoming a shell company for the contractor to game the system.

The fraud wasn’t simply about appearances. Evidence presented at Perino’s trial revealed a detailed agreement to receive payment equivalent to a percentage of the work fraudulently attributed to Perdel. This included a particularly egregious scheme involving O’Hare International Airport. Perino agreed to place the general contractor’s employees on Perdel’s payroll – essentially paying them to do work that would be credited to her company. The scheme extended to a sham contract for street sweepers, which were purchased and titled in Perdel’s name, despite being operated by the general contractor’s workers.

The city of Chicago ordinance requires at least 5% of total annual contract funding to be awarded to WBEs. For contracts exceeding $10,000, contractors must commit a specific percentage of labor to WBEs, either through joint ventures, subcontracting, or purchasing goods/services. Perdel, also a certified Disadvantaged Business Enterprise specializing in concrete and carpentry, exploited this system. Following the O’Hare project, the agreement stipulated the street sweepers would be returned to the general contractor for a mere $1 each, with Perdel pocketing an 18% premium on labor costs, plus $20 per hour for the use of the equipment – equipment they never actually used.

A jury convicted Perino last year on three counts of wire fraud and one count of mail fraud. The investigation was a joint effort led by the U.S. Attorney’s Office for the Northern District of Illinois, the FBI, the Department of Transportation Office of Inspector General, the Department of Labor’s Office of Inspector General, and the City of Chicago Inspector General’s Office. Brian Hayes, Chief of the Criminal Division of the U.S. Attorney’s Office, announced the conviction, signaling a continued crackdown on public corruption and fraudulent contracting practices.

Assistant U.S. Attorneys Megan Cunniff Church and Matthew Kutcher represented the government in the case. This sentencing sends a clear message: those who attempt to defraud public programs and undermine fair competition will be held accountable, regardless of their attempts to hide behind certifications and shell companies. The Grimy Times will continue to follow this case and report on any further developments.