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I-Team: Mavcon Investigation

Updated: Saturday, August 3, 2013 |
I-Team: Mavcon Investigation story image
KALAMAZOO, Mich. (NEWSCHANNEL 3) - Last week, Newschannel 3 told you how MAVCON Construction, the development company responsible for several projects in downtown Kalamazoo, is being fined by the state.

The Occupational Safety and Health Administration says MAVCON did not properly remediate or document toxic and known cancer-causing substances inside the Metro Center.

Now, we're learning that MAVCON has subpoenaed the contractors from our story.

We met up with those contractors to discuss the ongoing battle and why they are willing to risk everything to keep fighting.

The first two allegations claim that Schwartz HVac and Midwest Roofing did incomplete and poor work.

Marla Schwartz says the work done by her family business was never questioned until they brought up health concerns.

She told Newschannel 3 that their contract was terminated after they contacted us and we, in turn, contacted MAVCON.

Kevin Goff, of Midwest Roofing, told a similar story.

"I did 99 percent of the project, and they would not pay," he alleges.

Goff further alleged that he was told by the company that their lawyers would bankrupt him before he could get the balance of the money.

MAVCON's suit says both contractors "hatched a scheme" to "defame the Metropolitan Center and MAVCON," which "damaged business relationships," and "incited fear," yet both contractors received settlement offers from MAVCON.

Goff told Newschannel 3 that he had to take the settlement, which he claims was less than half the amount he was owed, or risk losing his assets and his house.

MAVCON's suit also alleges a number of false statements by the contractors.

According to Mike Schwartz, the offer was about 10 percent of what he was owed, and the offer demanded a retraction of all allegations his family made to state agencies.
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Last Update on August 31, 2015 07:33 GMT

ECONOMY-THE DAY AHEAD

WASHINGTON (AP) --There are no major economic reports scheduled for release today. But tomorrow, the Institute for Supply Management will issue its manufacturing index for August and the Commerce Department will report on construction spending for July.

Also tomorrow, automakers will release vehicle sales for August.

On Wednesday, the Labor Department will reveal second-quarter productivity data and the Commerce Department will report on factory orders for July. The Federal Reserve will also release its Beige Book.

CURRENCY REDESIGN

SENECA FALLS, N.Y. (AP) -- U.S. Treasurer Rosie Rios plans to travel to the National Women's Hall of Fame in upstate New York later today to hear from the public about plans to put a woman on the $10 bill.

Rios is scheduled to be at a town hall meeting in Seneca Falls, where the original 1848 Women's Rights Convention was held.

Treasury Secretary Jacob Lew announced in June that the $10 bill would be redesigned, with the portrait of Alexander Hamilton replaced with a woman. Lew says the agency has so far gotten more than a million responses to his request for comments.

Officials plan to make a decision by this fall, with the total redesign completed by 2020, the 100th anniversary of the passage of the 19th Amendment giving women the right to vote.

BERKSHIRE HATHAWAY-PHILLIPS

UNDATED (AP) -- Billionaire investor Warren Buffett's company has amassed a stake worth nearly $4.5 billion in Phillips 66 more than a year after trading a chunk of its holding in the oil refiner for a chemical business investment.

A regulatory filing says Berkshire Hathaway Inc. has accumulated about 58 million shares, which amounts to more than 10 percent of the Houston company's stock.

In late 2013, the Omaha, Nebraska, company agreed to trade about $1.4 billion of its Phillips 66 stock for one of the refiner's businesses that makes additives to help crude oil flow through pipelines.

Many investors watch Berkshire Hathaway filings closely because they like to copy Buffett's moves given his successful record.

ITALY-ENI-GAS FIELD

ROME (AP) -- An Italian energy company Eni says it has discovered a "supergiant" natural gas field off Egypt.

The company, Eni, says it's the largest ever found in the Mediterranean Sea.

The discovery well is about 120 miles from the Egyptian coast, at a depth of nearly 4,800 feet.

Eni says after full development, the discovery will be able to ensure satisfying Egypt's natural gas demands "for decades."

GENERAL MILLS-CLIMATE CHANGE

GOLDEN VALLEY, Minn. (AP) -- General Mills says it's eager to do its part to fight climate change, so it's setting a goal of cutting greenhouse gas emissions by 28 percent over the next decade -- from farm to fork to landfill.

The giant food company outlined its plans to The Associated Press ahead of an official announcement today.

General Mills says it will invest more than $100 million in energy efficiency and clean energy in its own operations. But its plan appears to stand apart from other companies' efforts by getting its suppliers and consumers into the act.

Those suppliers will be encouraged to do things like engage in more sustainable agriculture.

CEO Ken Powell says the company is acting because climate volatility will ultimately be bad for its business.

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