Manu Shah

U.S. Judge Jeanne Scott sentenced Manu Shah, 73, of Oak Brook, the owner of Shah Engineering Inc. to serve 41 months in prison.
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Shah is to report to prison on Aug. 20. Scott also ordered Shah and the corporation to pay a total of $10 million in restitution to 12 state and municipal entities, including the Illinois Department of Transportation, that were overcharged as a result of the fraud scheme from 1997 through 2004.
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Shah pleaded guilty in 2007 to mail fraud and submitting false documents to IDOT auditors.

Shah has since paid $1.5 million in cash toward the restitution and posted $5.5 million in stock funds. However since the deposit, the value of the securities has substantially decreased, the Springfield U.S. attorney's office said in a news release.

Shah was ordered to post another $1 million in 60 days with the total amount to be paid within 18 months.

Shah Engineering was a contractor or subcontractor on various projects for engineering and architectural services for IDOT and other state government agencies as well as for the city of Chicago from 1997 through 2005.

Manu Shah admitted overcharging IDOT and other entities when submitting contract invoices. The company misrepresented the amount of work its employees performed and exaggerated its expenses, the U.S. attorney's office said.

Shah also admitted falsifying records for an audit conducted by IDOT.

Manu Shahm.shah@shahengineering.com

Manu Shah (4), Shah Engineering, Inc.

""It doesn't look like it's very straightforward," said Manu Shah, president of Shah Engineering Inc. in Chicago...." [more]

Manu Shah (5), Shah Engineering, Inc.

Manu Shah, 70, of Oak Brook, the owner of Chicago-based Shah Engineering Inc., is scheduled to be sentenced June 4, according to a news release from the U.S. attorney's office in Springfield.In a hearing before U.S. Magistrate Judge Byron Cudmore, Shah pleaded guilty to two counts of mail fraud and one count of submitting false documents to IDOT auditors, prosecutors said.
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The company also did work for the Illinois state Toll Highway Authority, the Metra commuter rail agency, and various city of Chicago departments, according to prosecutors, who said Shah used different tactics to overcharge clients from 1997 through 2004.Court documents did not break down how much each agency may have been overcharged.Shah overstated the number of hours actually worked by his employees or shifted their hours into more profitable projects or contracts; he overstated overhead expenses; and he misrepresented some workers who actually were part-time or contract employees as full-time, allowing him to collect more money for their work, authorities said.There has been no final determination of the over billed amounts, which will have to be repaid as restitution.But federal prosecutors estimate it could be $5.5 million, and under plea agreement, Shah must deposit that amount in an escrow account by early May.