The United States and Tutor Perini Corporation Settle Civil Fraud Claims for $9.75 Million
Benton J. Campbell, United States Attorney for the Eastern District of New York, today announced the settlement of claims that Tutor Perini Corporation, formerly Perini Corporation (“Perini”), a publicly–traded construction services corporation, falsely and fraudulently reported that certain minority and disadvantaged business enterprises (“DBEs”) were performing subcontracted work on federally funded public works contracts with the City and State of New York, when in fact non–DBE subcontractors were performing the work. Pursuant to the settlement, Perini has paid the United States $9,750,000. The settlement does not constitute an admission of liability by Perini.
The settlement announced today is the result of a joint investigation conducted by the Federal Construction Fraud Task Force, which was organized by the United States Attorney’s Office in June 1999 to investigate fraud and corruption in the construction industry. In addition to the U.S. Attorney’s Office, the members of the Task Force include the Internal Revenue Service, Criminal Investigation Division; the USDOT Office of the Inspector General; the U.S. Department of Labor Office of the Inspector General; the New York City Department of Investigation; the Inspector General for the Metropolitan Transportation Authority; and the Inspector General for the Port Authority of New York and New Jersey.
For further information, please see the press release of the U.S. Attorney’s Office, Eastern District of New York.