BRAINERD — Anderson Brothers Construction Co. of Brainerd will pay $1.3 million to resolve allegations that it submitted falsified quality test results to the government for road paving projects between 2017 and 2022.
The United States and the state of Minnesota alleged the company violated the False Claims Act and the Minnesota False Claims Act, according to news releases from the U.S. Attorney's Office and Minnesota Attorney General Keith Ellison.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Anderson Brothers was required to submit quality tests of its paving material as a condition of payment for government contracts, the federal and state governments alleged.
Depending on the results, Anderson Brothers could earn financial incentives or deductions. The federal and state government allege the company was paid more because it "routinely and knowingly" falsified results.
"Today's settlement reinforces the fact that companies doing business with the government must fully comply with federal regulations and contractual obligations," stated Anthony Licari, special agent in charge, Department of Transportation Office of Inspector General, Midwestern Region.
"When fraudulent conduct like this undermines the integrity of highway paving putting the safety of the traveling public at risk, it's our job, together with our law enforcement and prosecutorial partners, to put an end to it."
In addition to the settlement, Anderson Brothers agreed to provide employee training and implement a code of ethics, among other internal measures. The company also entered a compliance monitoring agreement with the state Department of Transportation and will be closely monitored during the upcoming construction season.
Former employee Kacie Dixon brought the claims forward under the qui tam or whistleblower provisions of the False Claims Act. Dixon worked as a bituminous mix technician.
"Minnesotans expect their hard-earned tax dollars to go to things like roads, bridges, schools, and public safety, not into the pockets or corrupt contractors," Ellison stated.
"My thanks go out to whistleblowers like Kacie Dixon who help us fight fraud and protect our public resources. Let this serve as yet another warning that I will not hesitate to civilly prosecute those who cheat the taxpayers of Minnesota."
