Two Michigan construction companies have agreed to pay the federal government more than $1.4 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 reported Friday.
The government alleged that 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.
“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.”
“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.”
Source: U.S. Department of Justice