U. S. Attorney Andrew M. Luger | U.S. Department of Justice
Morcon Construction Company, Inc., a general contractor based in Fridley, Minnesota, has agreed to pay $5.9 million to resolve allegations of False Claims Act violations. The company, founded in 1982, is responsible for repair and maintenance work at U.S. Postal Service sites throughout Minnesota and other locations.
The United States alleged that from January 1, 2016, to the present, Morcon failed to disclose the use of subcontractors for repairs and maintenance. It was also accused of falsely certifying work as self-performed when it was actually done by subcontractors and falsifying subcontractor invoices in its claims submissions.
According to the United States, this fraudulent conduct led to millions of dollars in false claims being paid by the U.S. Postal Service. "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," stated U.S. Attorney Andrew M. Luger.
Kenneth Cleevely, Executive Special Agent in Charge of the USPS Office of Inspector General (OIG), commented on their involvement: "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 added that special agents will continue investigating fraudulent activities designed to defraud the Postal Service: "This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers."
The investigation was conducted by Assistant U.S. Attorney Kristen Rau and investigator Maleko Lattin-McCrary from the U.S. Attorney’s Office with assistance from the USPS Office of Inspector General.
It should be noted that these resolved claims are only allegations; no determination of liability has been made.
