Subcontractor Agrees to Pay the U.S. $500k+ in Damages

Subcontractor Agrees to Pay the U.S. $500k+ in Damages

Subcontractor Agrees to Pay the United States $500k+ in Damages After Failing to Pay Prevailing Wages on VA Construction Projects

PHILADELPHIA (STL.News) Acting United States Attorney Jennifer Arbittier Williams announced that S.A. Taylor, LLC (“S.A. Taylor”) has agreed to settle claims under the False Claims Act and to pay $561,411.72 based on allegations that the company caused the submission of falsified payroll records as part of two United States Department of Veterans Affairs (the “VA”) construction projects.

S.A. Taylor, a Virginia-based construction company, bid on and was awarded subcontracts to work on two VA construction projects under prime contractor, CTA, I, LLC.  Because the construction work was performed for the federal government, all contractors and subcontractors were required, by law, to pay their workers prevailing wages.  At the time, the prevailing wage was between $57 to $91.50 per hour, depending on the worker’s classification.

The government contends that S.A. Taylor paid its workers significantly less than the prevailing wage, but that it submitted falsified payroll records to make it seem as if the prevailing wage had been paid.  CTA, unaware of the falsity, submitted the payroll to the VA which, in turn, reimbursed S.A. Taylor.  Under this scheme, S.A.

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