Rahway Highway Contractor Agrees to $950k Settlement Over False Claims Act Allegations

The company faced allegations of misrepresenting itself as a Disadvantaged Business Enterprise to secure federally funded contracts.

RAHWAY, N.J. A Rahway-based highway contractor, MV Contracting Inc., will pay $950,000 to settle allegations that it falsely represented itself as a Disadvantaged Business Enterprise (DBE) to obtain contracts funded by the Federal Highway Administration (FHA), U.S. Attorney Philip Sellinger announced today.

The settlement addresses allegations that from October 2016 to April 2019, MV Contracting improperly acquired multiple federally funded contracts intended for businesses that qualify as DBEs. These contracts were part of a federal program aimed at addressing long-standing discrimination in highway construction contracting. The U.S. government contended that despite knowing it did not meet the qualifications for DBE status, MV Contracting falsely represented itself to gain access to the funds and submitted improper claims for payment under these contracts.

The investigation, led by the U.S. Department of Transportation's Office of Inspector General, under the direction of Eric J. Soskin, and the Port Authority of New York and New Jersey’s Office of Inspector General, under Inspector General John Gay, uncovered the allegations. The settlement ensures that MV Contracting will repay the federal funds, although no liability has been determined in this case.

The U.S. Attorney’s Health Care Fraud Unit in Newark, represented by Assistant U.S. Attorney Mark C. Orlowski, handled the case on behalf of the federal government. The False Claims Act allows the government to hold entities accountable for fraudulent claims involving federal funds.

This settlement serves as a reminder of the importance of integrity in federal contracting programs and the ongoing efforts to address fraudulent behavior that undermines opportunities for disadvantaged businesses.

The claims resolved by the settlement are allegations only, and MV Contracting has not been determined liable for any wrongdoing.