Morcon Construction Company, Inc., a general contractor based in Fridley, Minnesota, has agreed to pay $5.9 million to resolve allegations of violating the False Claims Act. Morcon, which has been in operation since 1982, handles repair, maintenance, and related work at U.S. Postal Service (USPS) sites in Minnesota and beyond.

The U.S. government alleged that from January 1, 2016, onward, Morcon intentionally failed to disclose its use of subcontractors for repairs and maintenance. The company also falsely certified work as self-performed rather than subcontracted and submitted falsified invoices from subcontractors as part of its claims submissions.

According to the U.S. Department of Justice, Morcon’s actions led to millions of dollars in false claims paid by the USPS. "This case demonstrates the dedication of the United States Attorney's Office along with our law enforcement partners to pursue those who undermine the integrity of the government contracting process," said U.S. Attorney Andrew M. Luger.

"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. "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 investigation was conducted by Assistant U.S. Attorney Kristen Rau and U.S. Attorney's Office investigator Maleko Lattin-McCrary, with assistance from the USPS Office of Inspector General.