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Minnesota Construction Company Agrees To Pay $1.7 Million To Resolve False Claims Allegations

On June 3, 2021, the U.S. Attorney’s Office for the District of Minnesota and the Attorney General’s Office for the State of Minnesota entered into a civil settlement with Mark Sand & Gravel Company (MSG). MSG agreed to pay $1.75 million—$1,328,250 to the United States and $421,750 to the State of Minnesota. Between 2013 and 2015, MSG allegedly violated the Federal and the Minnesota False Claims Acts by using unauthorized gravel materials on several federally funded road construction projects administered by the Minnesota Department of Transportation (MNDOT). This settlement agreement was neither an admission of liability by MSG or MNDOT nor a concession by the parties that their respective claims were not well founded.
DOT-OIG conducted this investigation with the Federal Bureau of Investigation (FBI), with significant assistance from MNDOT.