APNewsBreak: Firm to pay $2M fine in fraud case

AP News
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Posted: Dec 15, 2014 12:07 PM

WASHINGTON (AP) — A Maryland construction company has admitted to orchestrating phony partnerships to get millions in District of Columbia government contracts and agreed to pay a $2 million fine, ending a two-year fraud investigation.

The U.S. Attorney's Office for the District said in a statement provided to The Associated Press on Monday that the office has reached the agreement with Forrester Construction Corp. of Rockville, Maryland. The company had been under investigation for two years over fraud in the procurement of $145 million in government contracts.

Forrester teamed up with small District firms to win the contracts by promising that the local firms would do 51 percent of the work. But instead, prosecutors say the companies entered into side agreements that called for the local firms to do little to no work in exchange for a kickback.