Florida Keys Accident Attorney

'It's not the way we do things'

MERIDEN - Although it's still not clear what agents with the FBI and IRS Criminal Division were looking for when they raided Carabetta headquarters June 15, some of the companies' most recent, high-profile problems have involved projects by subsidiary SRC Construction Corp., led by Salvatore R. "Sammy" Carabetta.

SRC is the business development and construction arm of the Carabetta companies. As such, it's Sammy Carabetta's role in the organization to bring in new projects and execute existing deals.

Sammy Carabetta is no stranger to controversy, which has included allegations of bid steering and a questionable memorandum of understanding to do millions of dollars worth of work for the Hartford Housing Authority. Lawsuits involving both issues were settled or discarded in 2008 and 2009.

He is also listed as a managing partner with American Eagle Communities, formed in 2004 to fulfill a $3.3 billion contract for military housing in six states.

The housing projects failed because of cost overruns and were later sold to other developers for completion - but not without a dust-up caused by contractors in Georgia, Florida and Arkansas that were owed millions of dollars, and a whistle-blower in Washington state who said American Eagle Communities overbilled the U.S. Navy $40 million in the Pacific Northwest.

The failed projects led to federal investigations by the Naval Criminal Investigative Service and the Air Force inspector general's office, according to a report by the Seattle Post-Intelligencer newspaper. The Department of Justice is also investigating the military contracts.

An aide to former Vice President Dick Cheney referred one subcontractor's complaint to the Federal Trade Commission for investigation in 2007.

Sammy Carabetta declined to comment for this article, as did several company lawyers who have represented SRC and other Carabetta companies.

"We generally don't talk about our business in public," Sammy Carabetta told the Record-Journal in 2004. "It's just not the way we do things."

But as the housing projects soured in 2007, attorney Scott Consoli told the Record-Journal the problems at Moody Air Force Base in Valdosta, Ga., began when a subcontractor filed a lien.

Other subcontractors followed suit and the liens grew to $5 million, forcing lender Regions Bank to stop the funding. A Superior Court judge put the Moody Family Housing project into receivership and it was later sold along with five other base projects.

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