Government Contractor Pays $742,500 to Settle False Claims Act Allegations in Obtaining Contracts Reserved for Eligible Small Businesses
ALEXANDRIA, Va. – Midasco, LLC, located in Elkridge, Maryland, has agreed to pay $450,000 to settle False Claims Act allegations related to their work on the Virginia I-495 HOV/HOT Lanes Project.
The government investigated allegations that Midasco had not complied with the Davis-Bacon Act, specifically that they had not paid workers who performed electrical work on the HOT Lanes Project the prevailing wage required by federal labor standards. Instead, Midasco improperly classified workers as supervisors and paid them a salary in order to avoid paying the higher wages they were entitled to as electricians. The alleged conduct occurred between July 2012 and May 2015.
Midasco worked as a subcontractor on the HOT Lanes Project, a project that created approximately 29 miles of reversible high-occupancy toll lanes along the I-95/I-495 corridor. Midasco’s contract included installation of highway signing, lighting, toll gantries, ITS infrastructure, and electrical communication components.
The investigation was initiated after a lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits, when the government deems it appropriate. This case is captioned United States ex rel. David Ridley, et al. v. Midasco, LLC et al. (1:12-cv-1170 AJT-TCB).
The resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Commonwealth of Virginia’s Attorney General’s Office, the Department of Labor Office of Inspector General, and the Department of Transportation Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Monika Moore and Assistant Attorney General Peter Broadbent. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
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