A Fridley-based construction company, Morcon Construction Company Inc., has agreed to a $5.9 million settlement following allegations from the U.S. Attorney's Office in Minnesota that it failed to disclose the use of subcontractors while working on federal contracts.

Morcon, located at 5151 Industrial Boulevard NE, was accused of performing repair and maintenance work at U.S. Postal Service (USPS) sites in Minnesota but allegedly failed to inform authorities about subcontracted labor. The company was also accused of falsely certifying that work was self-performed and falsifying invoices submitted with claims.

The violations reportedly began in January 2016 and continued through 2024, leading to millions of dollars in false claims paid by the USPS.

“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 Kenneth Cleevely, Executive Special Agent in Charge of the USPS Office of Inspector General (OIG).

Cleevely emphasized the USPS OIG's commitment to pursuing fraudulent activities: “This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.”

Founded in 1982, Morcon Construction Company has yet to issue a statement regarding the settlement.