I. Civil Recovery Unit
The CRU has continued its charge of investigating and pursuing civil actions to recover money on behalf of the Commonwealth and local governments. The CRU investigates and develops matters for potential civil recovery, in partnership with other Office divisions and the Attorney General’s Office. Since its establishment in January 2019, the CRU, in collaboration with the Attorney General’s Office, has recovered more than $1.8 million for the Commonwealth, cities and towns.
Attorneys in the CRU also support the Office’s other work. CRU attorneys taught classes about identifying common scams and procuring legal services for the Office’s MCPPO program. They also made a presentation to another state agency about preventing fraud and contractor overbilling. In addition, the CRU contributed to the OIG Bulletin, drafted guides and alerts on fraud prevention and detection, and helped staff the Chapter 30B hotline.
A. Civil Recoveries from Former State Troopers for Unworked Overtime
In 2021, the CRU, working with the State Police Division and the Attorney General’s Office, reached settlements with 11 former Massachusetts State Police (MSP) troopers from the former Troop E to recover money they were paid for overtime that they allegedly did not work. To date, the CRU has reached settlements with 13 former troopers, recovering over $245,000.28
The recoveries arose from the MSP’s investigation of overtime abuse by Troop E members who were assigned to special overtime shifts intended to reduce accidents, crashes and injuries on state highways. The troopers were supposed to be on patrol and highly visible, targeting aggressive and speeding drivers.
B. Bridge Maintenance Contractors
The CRU, in collaboration with the Office’s Transportation Unit, investigated allegations from a hotline complaint that NEL Corporation (NEL), a Massachusetts-based bridge contractor, overbilled MassDOT. Based on the investigation, the Transportation Unit and the CRU concluded that NEL overbilled MassDOT under contracts to repair and maintain bridges throughout the state. The Office alleged that NEL knowingly charged MassDOT for items that NEL was required to provide at its own expense under the contracts, including certain tools, equipment, sanitary facilities and personal protective equipment.
In March 2021, NEL agreed to a $700,000 settlement with the Office and the Attorney General’s Office. As part of the settlement, NEL also agreed to implement measures to prevent future overbilling, including designating a contract manager to ensure that the company only bills MassDOT for work, supplies and equipment allowed under the contract. In addition, NEL agreed to hire an outside auditor to review NEL’s billing on all open MassDOT contracts annually and provide a copy of the audit to the Transportation Unit. These measures will remain in effect for five years. NEL neither admitted nor denied the allegations.
Similarly, the CRU and the Transportation Unit investigated billing by Massachusetts-based company, Kodiak Corporation (Kodiak), on MassDOT contracts to repair and maintain bridges throughout the state. Based on the investigation, the Office concluded that Kodiak had overcharged MassDOT. The Office alleged that Kodiak knowingly charged MassDOT for items that Kodiak was required to provide at its own expense under the contracts, including tools and equipment, sanitary facilities and personal protective equipment The Office also alleged that Kodiak knowingly double-billed MassDOT by submitting the same invoices for reimbursement more than once.
In January 2022, Kodiak agreed to pay $55,000 to settle the claims with the Office and the Attorney General’s Office. Under an assurance of discontinuance filed in Suffolk Superior Court, Kodiak was also required to implement measures to prevent future overbilling. It agreed to designate a contract manager for all new and existing MassDOT contracts who will train employees about billing and ensure that Kodiak’s billing complies with contractual requirements. Kodiak also agreed to notify MassDOT if it discovers any unallowed billing or payment. These measures will remain in effect for five years. Kodiak did not admit to wrongdoing under the settlement.
Additional Resources
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Open PDF file, 1.57 MB, OIG 2021 Annual Report (PDF 1.57 MB)
Contact for OIG Annual Report 2021: Legal Division
Address
Date published: | April 29, 2022 |
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