Construction firms pay $1M to settle false-claims allegations

PROVIDENCE – Rosciti Construction Corp. and Wallace Construction Corp., along with four of the companies’ current and former owners and officers, will pay $1 million to resolve civil allegations they violated the Federal False Claims Act.

They allegedly violated the act by submitting claims for reimbursement for funding they were not entitled to receive for federally funded contracts for roadway, water system and parking improvements throughout the state, U.S. Attorney Peter F. Neronha said Dec. 19.

Johnston-based Rosciti served as prime contractor; Providence-based Wallace, a subcontractor, was purported to be a disadvantaged business enterprise. However, the government alleges Wallace was not at the time a legitimate “disadvantaged business enterprise.” •

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