Contractor fined for Hiawatha Line claims

The Justice Department says Minnesota Transit Constructors Inc. falsified claims related to work performed by disadvantage businesses involved with construction of Minneapolis’ Hiawatha light rail.

Minnesota Transit Constructors has agreed to pay $4.6 million to resolve the allegations. It denies any knowledge of wrongdoing.

The Justice Department said the businesses claimed materials and services were provided by disadvantaged companies when in fact that did not occur. Spokeswoman Jeanne Cooney of the Minnesota U.S. Attorney’s Office said Minnesota Transit Constructors hired a few disadvantaged businesses as extra participants. "Their purpose was just to make it appear that they were truly involved in the project when in reality they weren’t involved," she said.

Dean Thomson, attorney for the joint venture, said, “These were allegations. They’ve been ongoing for six years. It cost my clients over $1 million to date just to keep defending and negotiating these issues. We decided it was time to simply put it to bed.”