The Office of the United States Attorney Reaches Settlement with Miron Construction Company, Inc. and Corporate Officers
United States Attorney James L. Santelle today publicly released a Non-Prosecution Agreement between the Office of the United States Attorney for the Eastern District of Wisconsin and Miron Construction Company, Inc., David G. Voss, Jr., and Dean J. Basten. Voss is half owner of Miron Construction and serves as its President and Chief Executive Officer. Basten serves as Miron’s Secretary, Treasurer, and Chief Financial Officer. Miron Construction Company, Inc. is headquartered in Menasha, Wisconsin, with regional offices throughout Wisconsin and in Iowa, Michigan, and Minnesota. Miron employs more than 1,200 individuals at its various offices and in 2013 reported sales in excess of $680 million.
The Non-Prosecution Agreement brings to a conclusion a multi-year investigation by the Federal Bureau of Investigation (FBI) of Miron’s billing practices in Wisconsin public school construction projects, Miron’s financial reporting practices in these and other construction projects, and Voss’s and Basten’s role in these billing and financial reporting practices.
United States Attorney Santelle stated that, among other things, the three-year Non-Prosecution Agreement: (1) calls for the appointment of a Monitor to oversee Miron’s operations during the period of the Agreement; (2) requires Miron to pay $4 million to the federal government, which the United States Attorney’s Office will use to compensate five separate school districts; (3) requires Miron, in all future construction contracts, to disclose to its customers the actual labor rates it is charging the customer; (4) ends a practice known within Miron as “cost smoothing” so as to accurately report its costs, revenues, and income on individual construction projects; (5) replace its current accounting and auditing firm; and (6) adopt a document retention policy that is consistent with industry practices and in compliance with its construction contracts.
In releasing the agreement, Santelle stated: “In addition to obtaining restitution for the named school districts and appointing a Monitor to review Miron’s business operations, the other important consideration in reaching this agreement is the potential impact on more than 1,200 Miron employees—who were uninvolved in and unaware of the allegations that prompted the FBI investigation and resulted in this resolution. If this matter had proceeded into a litigation posture, the jobs of all of those employees and those of many other individuals with jobs dependent on the business that Miron generates would be in peril.”
Santelle further stated that this was the first time that the U.S. Attorney’s Office had ever required an entity to agree to Monitor oversight. “I am confident that the business monitoring, financial compensation, contract disclosure, accounting modification, and other critical terms and conditions of this agreement accomplish justice for the parties involved and collectively address well the interests of the people we serve,” Santelle noted.
This matter was investigated by special agents of the Green Bay and Milwaukee Offices of the Federal Bureau of Investigation. Assistant United States Attorneys Carol L. Kraft and Joseph R. Wall oversaw the investigation and led the negotiations that resulted in the Non-Prosecution Agreement.
For additional information, contact Public Information Officer Elizabeth Makowski at (414) 297-1774.