Newark Reporter

A highway contractor based in Rahway, New Jersey, will pay $950,000 to settle allegations of improperly representing itself as a Disadvantaged Business Enterprise (DBE) to secure federally funded contracts. This announcement was made by U.S. Attorney Philip Sellinger.

The settlement addresses claims that from October 2016 through April 2019, MV Contracting Inc. obtained several contracts funded by the Federal Highway Administration (FHA). These contracts were set aside for DBE companies under a program aimed at addressing discrimination in federally assisted highway contracting markets. The United States alleged that MV Contracting secured these contracts despite knowing it did not qualify as a DBE and submitted improper claims for payment under the contracts, which were paid using federal funds.

U.S. Attorney Sellinger acknowledged the efforts of the U.S. Department of Transportation's Office of Inspector General, led by Eric J. Soskin, and the Port Authority of New York and New Jersey's Office of Inspector General, directed by Inspector General John Gay, in investigating the allegations against MV Contracting.

Assistant U.S. Attorney Mark C. Orlowski from the U.S. Attorney’s Health Care Fraud Unit in Newark represents the United States in this matter.

It is important to note that the claims resolved by this settlement are allegations only; there has been no determination of liability.