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Investigations

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U.S. and New York-based Electrical Contractor Settle Civil False Claims Action for $936,000

The United States Attorney for the Southern District of New York reached an agreement with Kleinberg Electric (KE) to settle claims that it violated DOT regulations designed to ensure participation of disadvantaged business enterprises (DBEs) in connection with the DOT-funded NYS-Metropolitan Transportation Authority's (MTA) Fulton Street Transit Center Dey Street Concourse (Dey Street Project).  Pursuant to this settlement, KE agreed to pay the United States $936,000.  The company admitted that it caused the prime contractor to submit false certifications to the MTA, representing that work was performed by J&R Rey Electrical (a DBE) on the Dey Street Project, when in fact, KE performed the work.

We investigated this case jointly with the MTA-Office of the Inspector General.