Maryland Attorney General Announces Lawsuit Against Construction Contractor

by Andrew Murray | May 28th, 2019

On May 14, 2019, Maryland Attorney General Brian E. Frosh announced that his office (in conjunction with the Board of Education of Washington County) has filed a lawsuit against J&K Contracting and its owner. The Complaint alleges violations of the Maryland False Claims Act. The Press Release states:

The Maryland False Claims Act prohibits the submission of false or fraudulent claims for payment to the government.Violators may be required to pay up to three times of the amount of damages sustained by the government and additional penalties of up to $10,000 per claim.

The lawsuit alleges that J&K Contracting violated the False Claims Act by submitting claims for payment—for roof replacement projects on two county schools—to the Washington County Board of Education that misrepresented its use of certified, minority-owned businesses to meet the contract’s Minority Business Enterprise (MBE) Program participation goals.

According to the complaint, J&K Contracting falsely claimed to have made payments to minority-owned businesses, and when documentation of the payments was requested, the company submitted falsified documentation to make it appear as if payments had been made.

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Washington County Board of Education had sought State appropriations to partially fund the school roof replacement projects.The Interagency Commission on School Construction, along with the Maryland Board of Public Works, approved State funding for the projects.The Interagency Commission requires all contracts funded through the Commission to contain MBE participation requirements and otherwise comply with the State MBE program.The Board of Education provided additional funding for the school roof projects.

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