- Office of the Attorney General
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Sabrina Zafar , Deputy Press Secretary
BOSTON — Attorney General Andrea Joy Campbell today announced that her office has reached a settlement with three construction companies, Eurovia Atlantic Coast, LLC d/b/a Northeast Paving; Lane Construction Corporation (Lane); and Stantec Consulting Services, Inc. (Stantec), (collectively, “the companies”), resolving allegations that Lane and Stantec engaged in public construction fraud, including misrepresentations of completed work and the submission of false claims, during a runway rehabilitation project at Westfield-Barnes Regional Airport. The Attorney General’s Office (AGO) asserts that the alleged violations led to significant safety-threatening defects and deterioration within the airport’s runway.
As part of a global $4.5 million settlement, the companies will collectively pay $3.13 million to the Commonwealth and $1.37 million to the U.S. Attorney’s Office for the District of Massachusetts (USAO).
The settlement funds account for payments made by the Massachusetts Department of Transportation (MassDOT) and the City of Westfield, both of which had contracted with Lane and Stantec for the 2013-2014 airport runway rehabilitation project. Lane’s paving business was later acquired by Northeast Paving.
“When critical public construction contracts are abused, the safety and wellbeing of our residents and the quality of our infrastructure are put at risk,” said AG Campbell. “I will continue to safeguard taxpayer funds by holding companies that misuse our public contracts accountable.”
“The Westfield-Barnes Airport is a vital air travel hub for Western Mass, including for the communities and businesses that rely on its infrastructure for economic productivity. We are grateful to the Attorney General’s Office and their partnership in this victory. Safety is priority number one, and we are glad to see this message reinforced by this outcome,” said MassDOT Aeronautics Acting Administrator Denise Garcia.
The AGO began investigating this matter upon receiving a referral from the USAO. Through that investigation, the AGO determined that Lane and Stantec purposefully skipped a significant step in the construction process, specifically the building of a trench between asphalt and concrete paving, in order to maximize payment on their public contract.
The failure to build the runway in accordance with contract specifications, the AGO asserts, resulted in water infiltration, crumbling, cracking and heaving of the runway, presenting a danger to aircraft, airport personnel, and local residents. According to the AGO, such defects were apparent within months after the project’s completion and led to subsequent repair projects in 2019 and 2020, along with the continued need for frequent maintenance.
The AGO alleges that Lane and Stantec violated the Massachusetts False Claims Act by falsely misrepresenting to MassDOT and the City of Westfield their completed work on the project. By submitting applications for payment and related certifications that contained false information, the AGO alleges that Lane and Stantec unlawfully obtained state and local funds for the omitted work.
This matter was handled by Assistant Attorney General Ann Refolo of the AGO’s False Claims Division, and Assistant Attorney General Sean Hildenbrandt, formerly of the AGO’s False Claims Division. MassDOT and the City of Westfield provided substantial assistance in this matter.
The AGO’s False Claims Division works to safeguard public funds and promote integrity and accountability in public contracting, including by holding to account individuals and companies that make false statements to obtain government contracts or funds and enforcing the Massachusetts False Claims Act. Individuals may report potential fraud and abuse relating to state or municipal contracts or funds by calling the AGO’s False Claims Tip Line at 617-963-2600.
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