Construction Companies Settle False Claims Charges Two Michigan construction companies have agreed to pay $11.75 million to settle charges that they misrepresented their use of subcontractors in the Transportation Department’s Disadvantaged Business Enterprise program. The Justice Department said Ajax Paving Industries Inc. and Dan’s Excavating Inc. agreed to pay the government to settle False Claims Act and administrative claims. The companies were charged with overstating the amount of work done by a DBE subcontractor, Borbolla Construction & Concrete Supply Inc., on federally funded construction projects at Detroit Wayne County Metropolitan Airport. “The companies claimed Borbolla Construction performed substantial work on the contracts when Borbolla Construction actually performed little more than minor administrative tasks,” Justice said. Dan’s and Ajax have signed agreements with DOT to ensure future compliance with DBE requirements. “When contractors create false records misrepresenting their disadvantaged business entity subcontracting in order to win a government contract, they flout the law and also undermine its purpose of giving a chance to those who deserve it,” said Stephen Murphy, U.S. attorney for the Eastern District of Michigan. “This settlement corrects the injustice created when contractors ignore their obligations.