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Rahway Contractor Pays $950K Fine After Making False Claims To Obtain Govt. Contracts: Feds

A Rahway highway contractor recently agreed to pay $950,000 to resolve allegations it improperly represented itself as a Disadvantaged Business Enterprise to obtain federally funded contracts, authorities said.

A Rahway highway contractor had to pay $950,000 in restitution after unlawfully earning highway contracts.

A Rahway highway contractor had to pay $950,000 in restitution after unlawfully earning highway contracts.

Photo Credit: Pixabay/sergeitokmakov-3426571

From Oct. 2016 to April 2019, MV Contracting secured several contracts funded by the Federal Highway Administration set aside to remedy ongoing discrimination in federally assisted highway contracting markets, US Attorney Phillip Sellinger said.

MV Contracting was awarded these contracts despite knowing that it did not qualify as a Disadvantaged Business Enterprise, Sellinger said. The company submitted improper claims for payment under the contracts, which were paid using federal funds, Sellinger said.

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