In the heart of Illinois, a once-powerful construction dynasty faced a dramatic downfall in the 1990s due to criminal convictions. Fast forward two decades, and a new generation of the Palumbo family has emerged with a flourishing construction business. Despite being banned from state and federal projects, the original companies have been replaced by Builders Companies, which has secured over $80 million in contracts from the Illinois Department of Transportation (IDOT) within the past five years. This article delves into the transformation and raises questions about oversight and compliance.

The Rise of Builders Companies Amidst Controversy

In the picturesque landscapes of Illinois, a younger generation of the Palumbo family has taken the reins of a burgeoning construction enterprise known as Builders Companies. This new venture, spearheaded by Ryan Gandy and his wife Kaitlyn Palumbo Gandy, has thrived remarkably, securing significant contracts from IDOT. In 2024 alone, Builders Paving, LLC, a subsidiary of Builders Companies, has been awarded more than $30 million for road resurfacing and improvement projects across several counties, including Arlington Heights, Mount Prospect, Wood Dale, and Lake and McHenry counties.

Further, Builders Paving has also been subcontracted for multiple projects under the Illinois State Toll Highway Authority, particularly on the Tri-State Tollway, where equipment from another affiliate, Builders Asphalt, LLC, has been utilized. These developments raise eyebrows, given that Sebastian "Sam" Palumbo, Kaitlyn's father, along with his brother Joseph and their late father Peter, pleaded guilty in 1999 to fraudulent activities involving union employee benefit plans and overbilling taxpayers on road projects.

The original companies, Palumbo Brothers, Inc., and Monarch Asphalt Company, were permanently barred from participating in state or federal construction projects. According to IDOT records, this prohibition extended to "all existing or later created affiliates and successors," including Orange Crush, LLC, based in Hillside. However, William Dwyer Jr., the attorney representing the Gandys, asserts that Sebastian Palumbo has no involvement with Builders Companies and that these entities are not subject to the debarment rules.

IDOT maintains that Builders Paving and Builders Asphalt have met all necessary criteria to do business with the state. Nonetheless, the department is conducting further reviews to ensure compliance with all regulations concerning prohibited firms. Observers note that some Builders equipment shares space at a west suburban construction complex used by Orange Crush, raising additional questions about the relationships between these entities.

Kaitlyn Palumbo Gandy is involved in Five Sisters Management, LLC, which manages Orange Crush. While her father, Sebastian Palumbo, was previously listed as an owner of Orange Crush, Dwyer clarifies that he has since stepped back from direct involvement. Despite this, the lingering connections and shared facilities continue to spark debate and scrutiny.

A New Chapter Raises Old Questions

The resurgence of the Palumbo family in the construction industry through Builders Companies highlights the complexities of regulatory enforcement and corporate restructuring. It serves as a reminder of the importance of transparency and rigorous oversight in public works projects. As the next generation builds its legacy, the community and regulators must remain vigilant to ensure that past mistakes are not repeated. The story underscores the need for robust checks and balances in awarding taxpayer-funded contracts, ensuring fair competition and integrity in the construction sector.