Three companies to pay $1.4M to settle Mass. contract claims

BOSTON – Three construction companies have agreed to pay $1.4 million to resolve allegations in Massachusetts that they falsely certified compliance with equal opportunity requirements on public construction contracts, Attorney General Maura Healey announced last week.

The complaint alleges that CTA Construction Co. Inc., MDR Construction Co. Inc., and Luxor Equipment Corp. – which is now known as Margen Inc. – violated the Massachusetts False Claims Act in connection with three contracts.

CTA acted as general contractor – and the other firms were subcontractors – on the projects, which included:

n A 2006 contract with the Mass. Division of Capital Asset Management to build the Camp Curtis Army National Guard Field Maintenance Shop in Reading.

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n A 2008 contract with the Mass. Port Authority to build the State Police Barracks at Logan International Airport.

n A 2008 contract with the Town of Hingham to build the Hingham East Elementary School.

The complaint alleges that CTA falsely claimed minority-owned business enterprise credits for its subcontracts with Luxor, even though the work was managed and performed by non-MBEs.

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