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Telecommunications company reaches settlement for allegedly failing to pay subcontractors

State AG

By Marian Johns | Dec 18, 2018

BOSTON — A Nebraska telecommunications infrastructure company has reached a settlement with the state of Massachusetts to resolve allegations the company failed to pay subcontractors under a contracted project for the Massachusetts Department of Transportation (MassDOT). 

The Massachusetts Attorney General's Office alleges G4S Secure Integration LLC violated the state's False Claims Act and Consumer Protection Act by submitting more than 70 payment requests for the two public contracts that contained fraudulent certification that the company had paid the subcontractors working on contracted projects. 

The projects included building a fiber optic network to connect communities in the western and north central parts of the state.  G4S delayed paying the subcontractors in order to "show higher cash balances on its financial statements," the Attorney General's Office said. 

“This company intentionally violated its contracts with our state agencies and its subcontractors for its own financial gain,” Massachusetts Attorney General Maura Healey said in a statement. “Contractors doing business with government entities have to conduct themselves with honesty and integrity.”

According to the settlement G4S will pay $430,000 in penalties as well as $20,000 to cover the Attorney General's Office investigation costs. G4S will also abide by state law when paying subcontractors and suppliers on future projects and submit to annual internal reviews for compliance, Healey's office said. 

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