Press Release  Telecommunications Contractor to Pay $450,000 for Making False Payment Certifications to MassdDOT and MassTech

Boston — A Nebraska-based firm that designs, engineers and installs telecommunications infrastructure will pay $450,000 to settle allegations that it failed to pay its subcontractors as required under contracts with the former Massachusetts Highway Department – now part of the Massachusetts Department of Transportation (MassDOT) – and the Massachusetts Technology Collaborative (MassTech), Attorney General Maura Healey announced today.

The assurance of discontinuance, filed in Suffolk Superior Court, resolves allegations that G4S Secure Integration LLC violated the Massachusetts False Claims Act and Consumer Protection Act by submitting more than 70 payment requests falsely certifying that it had timely paid its subcontractors in connection with two public contracts: a 2008 MassDOT contract to design and build a communications infrastructure and transportation system along I-91 and I-291 in the western part of Massachusetts; and a 2011 MassTech contract to design and build a fiber optic network, connecting 123 communities in western and north central Massachusetts. The company employed numerous subcontractors to complete the work under both contracts. The AG’s Office alleges G4S repeatedly delayed payments to its subcontractors until after its fiscal quarters closed, so it could show higher cash balances on its financial statements.  

“This company intentionally violated its contracts with our state agencies and its subcontractors for its own financial gain,” AG Healey said. “Contractors doing business with government entities have to conduct themselves with honesty and integrity.”

Under the terms of the settlement, G4S will pay $430,000 in penalties and an additional $20,000 to the AG’s Office to cover the cost of the investigation. Going forward, the company has agreed to pay its subcontractors, suppliers, and equipment providers in accordance with the payment terms of its contracts and subcontracts and make accurate and truthful representations about those payments in any certifications or claims it submits to a political subdivision of the Commonwealth. The company has also agreed to undertake annual internal reviews to ensure it is remains in compliance with its contractual payment obligations and with the terms of the settlement for a period of three years.  

The AG’s Office began investigating G4S after litigation concerning the MassTech contract revealed the false certification issue. MassTech is an independent public instrumentality of the Commonwealth, established pursuant to G. L. c. 40J. G4S cooperated fully in the AG’s investigation.

This matter was handled by Assistant Attorneys General Gillian Feiner, Chief of AG Healey’s False Claims Division, and Cassandra Arriaza and Jeff Walker, also of AG Healey’s False Claims Division, with assistance from Jim Sweeney, State Trial Counsel.

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