WASHINGTON--(BUSINESS WIRE)--May 13, 2022--

Today, the national law firm of Baron & Budd announced that it helped the Department of Justice secure a $2.8 million settlement against Hensel Phelps Construction Company in a False Claims Act case involving allegations of small business subcontracting fraud. In what is believed to be historic timing, the DOJ intervened and settled the qui tam matter a mere 21 days after the complaint was filed.

The settlement is related to the recent False Claims Act settlement against TriMark USA, LLC (“TriMark”). In that case, Baron & Budd attorneys helped obtain the largest amount ever recovered in the history of False Claims Act litigation involving allegations of small business fraud.

The lawsuit against Hensel Phelps was brought by a whistleblower represented by Baron & Budd who alleged that Hensel Phelps falsely certified to the government that it had subcontracted portions of a $68 million construction project involving the Armed Forces Retirement Home (“AFRH”)—a retirement community in Washington, D.C. that houses veterans and active-duty members of the United States Armed Forces—to a service-disabled veteran-owned small business (“SDVOSB”). Based on the whistleblower’s inside information, the government learned that Hensel Phelps instead engaged in a pass-through scheme with TriMark to make it appear as if Hensel Phelps awarded the subcontract to an SDVOSB on the AFRH project. In reality, however, TriMark provided the...

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