JA McDonald, Inc. Agrees to Pay $ 637,500 to Settle Allegations of False Claims Violations Arising from Construction of Federal-Aid Bridge in Vermont | USAO-VT

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The United States Attorney’s Office for the District of Vermont said general contractor JA McDonald, Inc. (JAM), headquartered in Lyndon Center, Vermont, agreed to pay the States $ 637,500.00 United and the State of Vermont to resolve allegations that JAM violated the False Claims Act, 31 USC 3729, and the Vermont False Claims Act, 32 VSA 631, by knowingly requiring the State of Vermont to submit false claims in the United States in connection with the federally funded construction of several bridges on Route 279 in the town of Bennington, Vermont, and on Interstate 91 in the town of Guilford, Vermont.

This regulation resolves allegations that, between approximately 2008 and 2010, JAM employees significantly altered certain components of the affected bridges by cutting or burning several sections of reinforcing steel in the reinforced concrete substructures that support bridges, and that JAM employees have steps to conceal such significant changes from the Vermont Agency of Transportation. The United States and the State of Vermont argue that as a result of this misconduct, the Vermont Agency of Transportation unwittingly paid JAM for faulty bridge work and, in turn, made false claims to the Federal Highway Administration. for the reimbursement of the federal share of the amounts that were paid to JAM.

In addition to agreeing to pay $ 637,500.00 to the United States and the State of Vermont as part of the civil settlement announced today, JAM also agreed, as part of a by-law and to a compliance agreement with the Federal Highway Administration, to implement the following corrective actions: (1) adopt a comprehensive code of ethics and compliance and train all employees in this code; (2) adopt a comprehensive quality assurance / quality control program and train all employees in the program; (3) appoint a corporate compliance officer who will be responsible for ensuring that JAM implements and adheres to the above code and program; and (4) retain the services of an independent monitor, who will perform on-site and unannounced inspections of JAM’s work on all federally funded contracts, and report the inspections directly to the Federal Highway Administration, during a period of time. three-year period.

Public infrastructure projects in the United States must be built with care and diligence, said Acting U.S. Attorney Jonathan A. Ophardt. When contractors recklessly neglect public safety and waste taxpayer dollars, the United States attorney’s office will aggressively investigate and hold them accountable.

This settlement agreement concludes more than two years of work by recognizing that there will be full accountability for work done on behalf of taxpayers, said Vermont Transportation Secretary Joe Flynn.

Pursuant to the Civil Settlement Agreement between the United States, the State of Vermont, and JAM, the settlement does not constitute an admission of liability by JAM or a grant by the United States or the State of Vermont that the claims made are not well founded. The claims settled in this case are just allegations; there has been no judicial determination of liability.

This case was investigated by the United States Attorneys Office for the District of Vermont in partnership with the Vermont Attorney General’s Office and the Vermont Agency of Transportation. Support was provided by the Office of the Inspector General of the United States Department of Transportation and the Federal Highway Administration.

Assistant United States Attorney Ben Weathers-Lowin handled the case on behalf of the United States. The State of Vermont was represented by Vermont Assistant Attorneys General Michelle Anderson, Bart Gengler and Gordon Landrigan. JAM was represented by Owen McClain, Esq. and Heather Ross, Esq. by Sheehey Furlong & Behm PC

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