MINNEAPOLIS – Morcon Construction Company, Inc., based in Fridley, Minnesota, has agreed to pay $5.9 million dollars to resolve allegations of False Claims Act violations. Founded in 1982, Morcon is a general contractor responsible for certain repair, maintenance, and related work at U.S. Postal Service sites throughout Minnesota and elsewhere.
The United States alleged that beginning in approximately January 1, 2016, to the present, Morcon intentionally failed to disclose the use of subcontractors to perform repairs and maintenance; falsely certified work as self-performed rather than performed by subcontractors; and falsified subcontractor invoices as part of its claims submissions.
The United States contended that Morcon’s fraudulent conduct resulted in millions of dollars of false claims paid by the United States Postal Service. “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,” said U.S. Attorney Andrew M. Luger.
“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,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service. This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.”
Assistant U.S. Attorney Kristen Rau and U.S. Attorney’s Office investigator Maleko Lattin-McCrary with the assistance of the USPS Office of Inspector General investigated the matter.
The claims resolved by this settlement are allegations only. There has been no determination of liability.
