By: Richard L. Smith
A highway contractor based in Rahway has agreed to pay $950,000 to settle claims that it misrepresented itself as a Disadvantaged Business Enterprise (DBE) to secure federally funded contracts, U.S. Attorney Philip Sellinger announced today.
The allegations, which span from October 2016 through April 2019, state that MV Contracting Inc. wrongfully obtained several contracts funded by the Federal Highway Administration (FHA).
These contracts were designated for DBE companies as part of a federal program aimed at addressing discrimination in highway contracting markets.
According to the U.S. Attorney's Office, MV Contracting secured the contracts despite knowing it did not meet the criteria for DBE status.
The company then submitted improper claims for payment under these contracts, which were covered using federal funds.
The investigation into MV Contracting was conducted by the U.S. Department of Transportation's Office of Inspector General, led by Eric J. Soskin, and the Port Authority of New York and New Jersey’s Office of Inspector General, under the direction of Inspector General John Gay.
This settlement stresses the federal government's commitment to enforcing the integrity of programs designed to support disadvantaged businesses.