Midasco, a Maryland-based infrastructure contractor, has agreed to settle False Claims Act allegations associated with work performed on the Virginia I-495 HOV/HOT Lanes Project. The company will pay $450,000 for filing false claims to receive government funds.
A private party filed a lawsuit against Midasco on behalf of the government under the whistleblower provisions of the False Claims Act. The lawsuit alleged between July 12 and May 2015, Midasco failed to comply with the Davis-Bacon Act, requiring companies and contractors to pay its workers the prevailing wage in relation to the federal labor standards.
Mdiasco allegedly misclassified the workers as supervisors, even though they were electricians to avoid paying the higher wages. As a subcontractor on the HOT Lanes Project, Midasco created about 29 miles of toll lanes along the I-95/I-495 corridor. The company’s contract included installation of toll gantries, lighting, signing, electrical communication components and ITS infrastructure, according to court documents.
The federal government investigated the allegations, but since Midasco has agreed to settle and pay restitution, they are not required to admit or deny guilt.