Assembly Square T Contractors Will Pay $420K for False Claims

SOMERVILLE, MA – A New Hampshire-based contractor and one of its subcontractors have agreed to pay more than $420,000 for submitting false or inflated payment requests to the MBTA while constructing the Assembly Square station in Somerville, the Attorney General's office announced Friday.

S&R Construction Enterprises, its president Stephen Early, subcontractor A&S Electrical LLC and its manager Gregory Lane agreed to settle after authorities alleged they knowingly submitted forged pay estimates in violation of the Massachusetts False Claims Act. This in turn front loaded payments early on in their contracts, according to the AGO.

"Building new public transportation infrastructure is how we will move Massachusetts forward, and taxpayers deserve confidence in how we spend every dollar," Attorney General Maura Healey said in a statement. "Over-billing and front-loading creates unacceptable risks of delays and degrades the integrity of our public contracting. Taking on this fraud is a top priority."

The state's complaint alleged that the two companies submitted payment requests indicating they had purchased construction materials in greater number or higher cost than they had actually purchased in an effort to receive larger payments than their contract provided.

Both companies acknowledged there was sufficient evidence supporting that they knowingly submitted the requests, according to the AGO. The settlements require a payment of more than $420,000, in addition to at least $110,000 in civil penalties.

S&R will also pay more than $40,000 to its employees and more than $25,000 in penalties for failing to pay the prevailing wage and submit accurate time records on both the construction of the Assembly Square Station and Wachusett Commuter Rail station, the AGO said.

S&R and A&S are barred from bidding on and accepting new public contracts in Massachusetts for five years and one year, respectively.

Image via Patrick Mannion via Flickr/Creative Commons