Anderson Brothers Construction Company of Brainerd LLC, a construction and paving firm based in Brainerd, Minnesota, has settled allegations by agreeing to pay $1,295,610. The allegations concern the violation of the False Claims Act and the Minnesota False Claims Act over a period from 2017 to 2022. It is claimed that the company falsified test results for paving materials to appear of higher quality than they were, submitting these results to the government to claim payments for road paving projects in Minnesota.
It was alleged by the United States and the State of Minnesota that Anderson Brothers was contractually obligated to conduct certain quality tests on its paving materials and provide these results to the government for federally funded road paving contracts. They claim that Anderson Brothers manipulated these results to obtain financial incentives for supposedly superior quality materials and avoid penalties for lower-quality materials. The untruthful test submissions reportedly led to government-funded payments for incentives the company did not deserve and allowed the company to evade financial consequences. Of the settlement amount, $660,761 will go to the United States and $634,849 to the State of Minnesota.
Lisa D. Kirkpatrick, Acting U.S. Attorney for the District of Minnesota, emphasized the importance of safeguarding taxpayer funds, stating, “The submission of false claims for federally funded government contracts will not be tolerated.” She added that the settlement is a reminder of vigilant investigations and accountability for inaccuracies in billing for government-contracted products.
Anthony Licari, Special Agent in Charge, Department of Transportation Office of Inspector General, Midwestern Region, stated, “Today’s settlement reinforces the fact that companies doing business with the government must fully comply with federal regulations and contractual obligations.” He warned of the danger posed by fraudulent practices that compromise the integrity of infrastructure and the public's safety.
The settlement resolves claims filed under the qui tam provisions of the False Claims Act by Kacie Dixon, a former employee at Anderson Brothers, allowing private parties to bring actions on behalf of the government and potentially receive part of any recovered funds. This case is titled United States ex rel. Dixon v. Anderson Brothers Construction Company of Brainerd, LLC., Civil Action No. 22-cv-02078 (D. Minn.).
The resolution was achieved through collaboration between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Minnesota, with support from the Office of Inspector General for the U.S. Department of Transportation, along with the Minnesota Attorney General’s Office and the Minnesota Department of Transportation.
The investigation was conducted by Fraud Section Trial Attorney Danielle Rowan and Assistant U.S. Attorneys David Fuller and Adam Hoskins from the District of Minnesota. It should be noted that the settlement resolves allegations without confirming any liability.
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