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Contractor Agrees to Pay $260,000 for False Claims Involving Delaware Transportation Projects

Professional Service Industries, Inc. (PSI), an Illinois-based engineering consulting and testing firm, agreed to pay $260,000 for False Claims Act violations as part of a civil settlement with the U.S. Government. From 1994 through 1997, PSI held two contracts with the Delaware Department of Transportation for providing consulting services (primarily inspecting services for concrete and other bridge materials manufacturing work) under federally-funded construction projects, including the State Road 1 project. During that period, PSI allegedly billed for fraudulent costs, including work not actually performed and incorrect labor rates.