Morcon Construction Company, Inc., located in Fridley, Minnesota, has agreed to a settlement of $5.9 million to address allegations related to violations of the False Claims Act. Established in 1982, Morcon serves as a general contractor for repair and maintenance work at U.S. Postal Service sites in Minnesota and other areas.
The United States government alleged that from approximately January 1, 2016, onward, Morcon failed to disclose the use of subcontractors for repairs and maintenance. It was also alleged that the company falsely certified that certain work was self-performed rather than completed by subcontractors and falsified subcontractor invoices in its claims submissions.
The U.S. government claimed that these fraudulent activities led to millions of dollars being paid out in false claims by the United States Postal Service (USPS). "This case demonstrates the dedication of the United States Attorney’s Office along with our law enforcement partners to pursue those who undermine the integrity of the government contracting process," stated U.S. Attorney Andrew M. Luger.
Kenneth Cleevely, Executive Special Agent in Charge of the USPS Office of Inspector General (OIG), remarked on their involvement: "We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program." He added that "Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service."
The investigation was conducted by Assistant U.S. Attorney Kristen Rau and U.S. Attorney’s Office investigator Maleko Lattin-McCrary with assistance from the USPS Office of Inspector General.
It is important to note that these resolved claims are allegations only, with no determination of liability having been made.