Qui Tam

Construction Firm Mercer-Fraser settles qui tam lawsuit for $1.3 million

By Brian F. LaBovick

Midsized construction firm, Mercer-Fraser agreed to pay $1.3 million to settle fraud allegations involving work under the U.S. Small Business Administration's HUBZone Empowerment Contracting program. According to the claim, Mercer- Fraser used false information to gain business. The Company misrepresented the size of their earnings and their partnerships in their application to the Small Business Administration.  

Mercer-Fraser maintains that they did nothing wrong and that the error was that of the Small Business Administration.

In late 2007, the government decided to get involved with this qui tam claim after whistleblower, Mark Mann, employee of a competitor and supplier of Mercer-Fraser and affiliate Contri Construction Company brought the matter to the Department of Justice's attention through his attorney.

Congratulations to Mr. Mann for following through and stepping forward to report this wrongdoing against the government. Although, this is a small award, it is another step in the right direction for the fight against government fraud.

Full post as published by Whistleblower Law Blog on February 05, 2009 (boomark / email).