On August 17, 2017, J.A. McDonald (JAM), a Vermont-based corporation, and its owner, Eric Boyden, reached an agreement with the United States to pay $270,000 to settle allegations that JAM knowingly caused the State of Vermont to present false claims for payment to the Federal Government.
JAM specializes in various types of construction work including, but not limited to, the construction of bridges. JAM entered into a contract with the Vermont Agency of Transportation (VTrans) to construct a bridge over the New Haven River. The project is federally funded under the Federal-Aid Highway Program.
From approximately May 2014 to December 2014, JAM installed twelve bridge bearing device assemblies that were subsequently determined to be materially deficient. The State of Vermont paid JAM in full for the installation of the bridge bearing device assemblies. The United States contends that, from May 2014 through December 2014, JAM caused VTrans to present false claims for reimbursement to the Federal Highway Administration (FHWA).
The settlement monies paid by JAM will be divided among the State of Vermont, FHWA, and the U.S. Treasury Department. The settlement agreement is neither an admission of liability by JAM or Boyden nor a concession by the United States or the State of Vermont that their claims are not well founded.
The settlement is the result of a coordinated effort between the U.S. Attorney’s Office for the District of Vermont, Vermont Attorney General’s Office, and DOT-OIG This investigation was conducted by DOT-OIG with assistance from VTrans and FHWA.