CA Companies Settle False Claims For $1.9M; Whistleblower to Get $393K
Five California-based masonry subcontractors and two individuals have agreed to pay the government $1.9 million to resolve allegations that the parties violated the False Claims Act in connection with military construction contracts, the U.S. Department of Justice announced today. The defendants allegedly misrepresented their status as disadvantaged small businesses. The defendants are Frazier Masonry Corp., F-Y Inc., CTI Concrete & Masonry Inc., Masonry Technology Inc., Masonry Works Inc., Russell Frazier and Robert Yowell.
The case involved contracts to construct facilities at Marine Corps bases at Camp Lejeune, N.C., and Camp Pendleton, Calif. Under the rules of the Small Business Administration, the contracts required that a certain percentage of the work be performed by disadvantaged small businesses. This contract requirement was intended to benefit small firms owned by women, minorities and other disadvantaged groups.
The government alleged that the defendant masonry subcontractors and their principals misrepresented to the prime contractors that they were small businesses, and that these misrepresentations caused the prime contractors to falsely certify that they had complied with the small business provisions of the contracts in claiming payment. Russell Frazier previously pleaded guilty in related criminal proceedings to causing false statements.
The lawsuit was originally filed by Rickey Howard, a former employee of Frazier Masonry Corp., under the whistleblower provisions of the False Claims Act. The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Howard will receive $393,383 as his portion of the settlement.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments. We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud. Read more about our expertise in False Claims Act cases andhow you can take action.