Federal authorities raided general contractor Cadence McShane Construction Co. LLC’s San Antonio and Austin offices along with its Plano headquarters this Wednesday, the American City Business Journals newspaper chain reports.
Cadence McShane has worked on a variety of high-profile San Antonio-area construction projects including The ’68 Apartments at Hemisfair and the Villas at The Rim, according to ACBJ. The company has also worked on affordable housing projects such as the East Meadows Apartments.
Company Vice President Srinath Kasturi told ACBJ that U.S. Housing and Urban Development officials entered its offices in San Antonio, Austin and Plano to obtaining records related to a lawsuit that stemmed from a former employee’s complaint. Kasturi said the contractor cooperated in the raid, adding that authorities didn’t arrest or detain anyone.
Kasturi further told ACBJ that the U.S. Department of Justice chose not to pursue the “substantive allegations” related to the employee complaint.
“We feel very strongly the whole matter is without merit but we have to go through the process,” he added. “Because the litigation is ongoing, we are unable to comment further at this time.”
ACBJ’s San Antonio Business Journal reported earlier this week that Cadence McShane is involved in a whistleblower suit against Opportunity Home, the city’s public housing authority.
As part of the lawsuit, two Cadence McShane workers allege the company overcharged the federal government for construction of an apartment complex in Converse, allegedly exceeding the legally allowable profits by pulling in $7 million in income on a $45 million job, the paper reports.
Texas politics is a mess. We make it a readable mess.
Sign up for San Antonio Current’s new “Texas Politics This Week” newsletter.
Sign Up for SA Current newsletters.
Follow us: Apple News | Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter | Or sign up for our RSS Feed
