
Minnesota Contractor Pays Millions in USPS Fraud Settlement
Minneapolis, MN (KROC-AM News) - A Minnesota construction firm has agreed to pay millions of dollars to settle allegations that it had ripped off the US Postal Service.
The US Attorney for Minnesota says Morcon Construction of Fridley was accused of submitting millions of dollars worth of false claims for repair and maintenance work at postal facilities throughout the state and elsewhere that were paid by the Postal Service. It was alleged that it intentionally failed to disclose the use of subcontractors to perform repairs and maintenance, falsely certified work as self performed rather than performed by subcontractors, and falsified subcontractor invoices as part of its claims submission.

According to a news release, the firm has agreed to pay $5.9 million to settle the complaints.
“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service. This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.”
The multimillion dollar settlement was the result of an investigation conducted by the US Attorney's Office for Minnesota and the United States Postal Service Office of Inspector General.
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