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Massachusetts Construction Contractor Pleads Guilty for Role in Falsification of Change Orders on Central Artery/Tunnel Project

On May 20, 2008, McCourt Construction Company, Inc. d/b/a McCourt/Obayashi, J.V. (MC/O), Boston, Massachusetts, entered a guilty plea in U.S. District Court, Boston, Massachusetts, for its role in a conspiracy to submit false claims on a Central Artery/Tunnel (CA/T) Project contract. MC/O falsely classified apprentice–level trades persons as journeymen on daily reports used to compile costs for time and materials (T&M) change orders, thus inflating the amounts MC/O would be paid.

MC/O–the prime contractor on the CA/T Project’s I–93 tunnel finishes contract–was charged with conspiracy to make false statements regarding Federal highway projects. The investigation disclosed that the fraud, which appeared in claims submitted between 2002 and 2006, resulted in a $300,000 loss to the government. The investigation was worked jointly by DOT/OIG, the U.S. Department of Labor/OIG, and the Federal Bureau of Investigation. The results of this investigation were furnished to the Federal Highway Administration for suspension/debarment consideration.