A settlement reached to resolve False Claims Act Allegations against Harper Construction Company Inc.
The allegations arose by a lawsuit claiming Harper Construction Company fraudulently billed the government for work on several projects on military bases. Harper Construction Company intentionally used fake small disadvantaged businesses and then falsely certified to the government that it used legitimate small disadvantaged businesses.
According to the Department of Justice, the settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune. The contracts required Harper to subcontract a certain percentage of work to small disadvantaged businesses. Such requirements arise from measures intended to ensure that a fair proportion of federal contract and subcontract dollars are awarded to small businesses. It was alleged that Harper claimed it met this requirement when, in fact, it subcontracted with sham small disadvantaged businesses. Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.
The whistleblowers' share of the settlement will be $1,485,000.
