March 15, 2007

Ajax Paving Industries and Dan’s Excavating Inc. have agreed to pay over $11.75 Million Dollars to settle False Claims Act and administrative claims involving federally funded construction at Detroit Wayne County Metropolitan Airport.

The case involved allegations that the contractors created false records misrepresenting their disadvantaged business entity subcontracting in order to win one or more government contracts.

Many government contracts require that, to be qualified to bid upon such contracts, a bidder must agree that a certain percentage of the work under the contract will be performed by a company which has been certified as a “Disadvantaged Business Entity” (DBE).  If a contractor falsely represents that one or more of its subcontractors are a DBE, or falsely certifies that a DBE has or will do the work, such false representations may serve as a basis for qui tam claims under the federal False Claims Act

See U.S. Dept of Justice Press Release

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