Fridley-Based Morcon Construction Agrees To $5.9M Settlement Over False Claims Act Allegations

Fridley-Based Morcon Construction Agrees To $5.9M Settlement Over False Claims Act Allegations

Minnesota's Morcon Construction Company, Inc., a long-time general contractor for the U.S. Postal Service, has agreed to a $5.9 million settlement connected to allegations of False Claims Act violations. This move comes as the firm, hailing from Fridley and operational since 1982, was accused of not being entirely forthcoming about its use of subcontractors, falsely claiming self-performed work, and faking invoices in its submissions for federal reimbursement.

The United States puts forth that from about January 1, 2016, to the present, Morcon intentionally neglected to properly disclose their reliance on subcontractors, which allowed them to illegitimately certify their work and, subsequently, to falsely submit claims to the Postal Service. Such actions appeared to be carefully orchestrated to obtain millions from the federal agency. "This case demonstrates the dedication of the United States Attorney's Office along with our law enforcement partners to pursue those who undermine the integrity of the government contracting process," explained U.S. Attorney Andrew M. Luger in a statement released by the Department of Justice's official website.

In response to the settlement, Kenneth Cleevely, Executive Special Agent in Charge at the USPS Office of Inspector General (OIG), expressed satisfaction, saying, "We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program." He emphasized the OIG's ongoing commitment to aggressively investigate and eventually take to task those who'd seek to defraud the Postal Service.

The investigation preceding the settlement was a concerted effort by Assistant U.S. Attorney Kristen Rau and U.S. Attorney’s Office investigator Maleko Lattin-McCrary, with the helping hand from the USPS OIG. The allegations, which have led to Morcon's multi-million dollar payment, indeed bring to an end one episode of purported deception but do not, by themselves, constitute a legal verdict of guilt. As Cleevely pointedly remarked, "This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers."

SOURCE: hoodline