Vernon Contractor to Pay $2.4 Million to Settle Alleged Overbilling of USPS

Federal settlement resolves claims that construction firm submitted inflated labor and materials costs on regional postal facility contracts.

A Vernon-based construction company has agreed to pay $2.4 million to resolve federal allegations that it overbilled the United States Postal Service for work performed at postal facilities across three states, according to an announcement from federal prosecutors.

Senior Counsel Philip Lamparello said Phillips-Glenwood Construction, Inc. reached a civil settlement under the False Claims Act stemming from its work on construction and facilities management contracts for the United States Postal Service.

The settlement resolves allegations that between Aug. 1, 2020, and Aug. 12, 2025, Phillips-Glenwood submitted false claims for payment in connection with USPS facilities in New Jersey, Pennsylvania, and Delaware. Federal authorities alleged the company provided false and altered documentation that inflated labor hours and materials purchases in its billing requests for work performed under the contracts.

The case was investigated by special agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Colleen Ehlich, according to federal officials.

The United States was represented in the matter by Assistant U.S. Attorney Mark C. Orlowski of the Health Care Fraud and Opioids Enforcement Unit in Newark.

Federal officials emphasized that the settlement resolves allegations only and does not constitute an admission of liability by Phillips-Glenwood Construction. The payment concludes the government’s civil claims related to the alleged overbilling during the specified period.