MINNEAPOLIS – Mark Sand & Gravel Co. has agreed to pay $1.75 million in damages for allegedly violating the federal False Claims Act and the Minnesota False Claims Act, by using unauthorized gravel materials in connection with several federally-funded road construction projects administered by the Minnesota Department of Transportation.
According to the allegations, between 2013 and 2015, Mark Sand & Gravel Co. performed substantial work on three separate federally-funded road construction projects – for portions of Trunk Highways 34, 59/10, and 78 – in or near Detroit Lakes, Minnesota.
All such projects are required, by law and contract, to be performed in accordance with detailed terms and specifications using only approved materials. The government contends Mark Sand & Gravel Co. failed to follow contract specifications by using unauthorized and substandard materials, namely waste or shale rock included in the gravel mix for the projects, and making materially false claims and statements in connection with its use of those materials.
The proceeds of the settlement will be divided by the federal and state governments according to the original funding of the projects.
This case was jointly investigated by the Office of Inspector General of the U.S. Department of Transportation and the Minnesota Department of Transportation, and handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota, as well as the Minnesota Attorney General’s Office.
The claims resolved by the settlement are allegations only; there has been no determination of liability.