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November 22, 10
NEWS / Two Michigan Construction Firms to Pay More Than $1.4 Million to Resolve Alleged False ClaimsAlleged to Have Falsely Claimed Using Disadvantaged Business at Detroit Airport WASHINGTON – Two Michigan construction companies have agreed to pay the United States $1.407 million to resolve allegations that they knowingly submitted false claims relating to a federally funded construction project at Detroit Wayne County Metropolitan Airport, the Justice Department announced today. The United States alleges that the companies, John Carlo Inc. and Angelo Iafrate Construction Company, falsely claimed that they had used Disadvantaged Business Enterprises (DBEs) for part of the work on the project when they had not. The DBE program provides assistance to businesses owned by minorities, women, and other socially and economically disadvantaged individuals to enter federally-funded construction and design industries. Under their contracts, the two firms were required to comply with the Department of Transportation’s (DOT) DBE regulations and accurately report their DBE contracting to obtain and maintain the construction contracts. The companies claimed BN &M Trucking, a DBE, performed substantial work on the contracts when, in fact, the trucking firm did not and was merely a pass-through used to obtain the appearance of DBE participation. "Those who contract with the United States must do so fairly and honestly," said Tony West, Assistant Attorney for the Civil Division of the Department of Justice. "It is not acceptable for government contractors to take advantage of programs meant to help businesses owned by minorities and women." In addition to the $1.407 million payment to resolve civil claims, Angelo Iafrate Construction has also entered into a separate administrative agreement with DOT to ensure future compliance with DBE requirements. "When contractors abuse programs designed to benefit disadvantaged businesses, they are stealing from the legitimate businesses that the law was intended to help," said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan. "We are very grateful to the Wayne County Airport Authority, whose help was instrumental in this case." The government’s claims were based upon an investigation conducted by the Civil Division of the Justice Department, the U.S. Attorney’s Office for the Eastern District of Michigan, DOT’s Office of Inspector General and the Federal Aviation Administration, as well as the Wayne County Airport Authority. The Wayne County Airport Authority first brought the case to the government’s attention and provided substantial assistance throughout the investigation and resolution of the matter. http://www.justice.gov/opa/pr/2010/November/10-civ-1331.html |
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