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Upstate New York Construction Company Settles Civil False Claims Act Allegations

On December 7, 2017, Cold Spring Construction Co. (Cold Spring), a road construction company in Akron, New York, agreed to pay $327,653.50 to the U.S. Government. The payment will settle allegations that Cold Spring utilized a now-defunct Disadvantaged Business Enterprise (DBE), American Indian Builders & Suppliers, Inc. (AIB), as a pass-through material supplier on various federally funded roadway projects in the State of New York. Cold Spring acknowledged that AIB did not perform a commercially useful function on the projects, and Cold Spring instead obtained its materials from a non-DBE supplier.
DOT-OIG conducted this investigation with the Environmental Protection Agency OIG. The settlement was handled by the U.S. Attorney’s Office, Northern District of New York.