3 Construction Firms to Pay $1.4 Million over False DBE Claims

CTA Construction will pay $1.05 million to settle allegations that it falsely claimed to have hired a minority-owned subcontractor for work on three public construction contracts

BostonGlobe.com

Three Massachusetts construction businesses will pay $1.4 million to settle claims by state Attorney General Maura Healey that they lied about meeting minority contracting requirements.

CTA Construction Co. Inc., a Waltham general contractor, will pay $1.05 million to settle allegations by the attorney general that it falsely claimed to have hired Margen Inc., a minority-owned subcontractor, for work on three public construction contracts. 

Healey’s office alleged CTA listed Roxbury-based Margen, formerly known as Luxor Equipment Corp. Inc., as having conducted work on three projects that it did itself or hired Tewksbury’s MDR Construction Co. Inc. to do. MDR agreed to pay $150,000, and Margen agreed to pay $200,000 and accept a ban on doing business with the state of Massachusetts or any towns and cities.

(more on Massachusetts DBE settlement . . . )

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