“Oh, when times get tough, and friends just can’t be found,” the solution is not to lay down a “deficient” bridge. The Office of the United States Attorney for the District of Vermont recently announced a settlement with a Vermont-based contractor for violations of the Federal False Claims Act and the Vermont False Claims Act.
According to the allegations, in the course of constructing several bridges in Guilford and Bennington, Vermont, J.A. McDonald, Inc. (JAM) not only “materially altered” the structure of the bridges but also concealed those alterations and then submitted claims for payment to the Vermont Agency of Transportation. The false claims at issue are that the Vermont Agency of Transportation not only paid the contractor for “deficient bridgework” but also the state agency “unwittingly” submitted claims for payment to the Federal Highway Administration for the federal share of the project.
Under the terms of the settlement, the contractor paid $637,500 and is subject to a compliance agreement. To prevent employees from burning or cutting sections of steel structures reinforcing bridges (and then concealing their actions), the contractor is required to implement a variety of compliance and oversight programs, including retaining an Independent Monitor for three years, adopting an Ethics and Compliance Code and a Quality Assurance/Quality Control Program, and designating an internal Corporate Compliance Officer to manage these compliance initiatives.
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