Minnesota Transit Constructors Inc. (MnTC), a joint venture comprised of Granite Construction, C.S. McCrossan Inc. and Parsons Transportation Group, as well as a number of subcontractors, have agreed to pay the United States $4.6 million to resolve allegations that they knowingly submitted false claims related to a federally-funded transit construction project in Minneapolis, Minnesota.
The United States alleges that the companies falsely claimed that they had used Disadvantaged Business Enterprises (DBEs) for part of the work on the project when they had not. The U.S. Department of Transportation’s (DOT) DBE program provides assistance to businesses owned by minorities and women, as well as socially and economically disadvantaged individuals, to participate in federally-funded construction and design projects.
MnTC was the prime contractor on the project to design and build the Hiawatha Light Rail Transit System, a light-rail line linking downtown Minneapolis-St. Paul International Airport and the Mall of America. To obtain and maintain their contract, MnTC and its subcontractors were required to comply with the DBE regulations and to accurately report their DBE contracting. MnTC claimed that materials and services for the project were provided by DBEs, when in fact they were provided by non-DBE subcontractors and the DBEs were merely extra participants used to make it appear as if a DBE had performed the work.
“The Disadvantaged Business Enterprises program helps businesses owned by minorities and women work on federal construction projects,” said Tony West, Assistant Attorney for the Civil Division. “Those who make misrepresentations in order to participate in this program and obtain federal funds take advantage both of the taxpayers and the businesses that the program is designed to assist.”
“When businesses misrepresent those working with them to obtain government contracts, they violate the law and economically harm subcontractors who already face numerous disadvantages in the workplace,” added B. Todd Jones, U.S. Attorney for the District of Minnesota. “This resolution helps to correct that injustice in this instance.”
The government’s claims were based upon an investigation conducted by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Minnesota, DOT’s Office of Inspector General and the Federal Transit Administration.
The Justice Department’s total recoveries in False Claims Act cases since January 2009 have topped $7.5 billion.
Defendant/respondent: Minnesota Transit Constructors Inc.
Exact criminal charges: False Claims Act Liability
City and state: Minneapolis, Minnesota
Date: (no specific date given)
Sentence or outcome: Minnesota Transit Constructors Inc. has agreed to pay the United States $4.6 million to resolve allegations of false claims related to a federally-funded transit construction project in Minneapolis, Minnesota.
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Key Facts
- State: Minnesota
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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