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Florida Contractor in ARRA Funded Project Settles Civil False Claims Case

On December 1, 2012, S&S Precast, Incorporated (S&S), and its owner Jerry Shannon, entered into a settlement with the U.S. government in connection with a civil false claims investigation pertaining to S&S' production of concrete K-Wall barriers for use on a federally funded road construction project. The settlement agreement requires Shannon, on behalf of S&S, to pay the U.S. government $50,000 with an initial $10,000 to be paid within 20 calendar days of the effective date of the agreement.  

In late 2009, APAC Southeast, Incorporated (APAC), entered into a contract with the Florida DOT (FDOT) for a road construction project on I-75 between Colonial Boulevard and State Road 82 in Lee County, Florida.  The project was supported with Federal Highway Administration funds provided through the American Reconstruction and Recovery Act (ARRA).  In April 2010, S&S Precast entered into a rental subcontract with APAC to supply K-Wall barriers for this project.  The rental subcontract required the K-Wall barriers to be manufactured by S&S in accordance with manufacturing and production requirements set forth by FDOT.  Shannon personally directed S&S' employees to change the production date on the identification plates of 80 K-Wall barriers that had been manufactured previously.  Doing so made it appear that these K-Wall barriers had been manufactured after S&S received the required manufacturing and production certification from FDOT.