July 28, 2017
Maryland Transportation Contractor Agrees To Pay $450,000 To Settle Civil False Claims
On July 28, 2017, Midasco LLC, Elkridge, Maryland, agreed to a $450,000 civil settlement with the U.S. Attorney’s Office, Alexandria, Virginia, to settle allegations that Midasco submitted false payrolls in violation of the Davis-Bacon Act and the Contract Work Hours and Safety Standards Act. The alleged violation occurred during Midasco’s work on the Virginia I-495 High-Occupancy Vehicle/High-Occupancy Toll (HOV/HOT) Lanes Project .
The Government investigated allegations that Midasco did not pay the proper prevailing wage required by Federal labor standards to workers who performed electrical work on the HOV/HOT Lanes Project. In addition, Midasco improperly classified the workers as foremen to avoid paying them the higher rates they were entitled to as electricians.
The HOV/HOT Lanes Project, which created approximately 29 miles of reversible HOT lanes along the I-95/I-495 corridor, was funded by U.S. DOT and the Virginia Department of Transportation. Midasco was a subcontractor on the project, whose work included installation of highway signage, lighting, toll gantries, intelligent transportation system infrastructure, and electrical communication components.
The settlement is the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, Commonwealth of Virginia’s Attorney General’s Office, Department of Labor (DOL) OIG, and DOT-OIG.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.