Gilbane Building Company has agreed to pay the sum of $1.1 million to satisfy claims of false claims for a company it merged with in 2010. In November, 2010, W.G. Mills Inc and Gilbane Building company merged but had created a front company in order to gain a coveted contract with the Coast Guard. W.G. Mills had setup a company known as Veterans Constructors Incorporated (VCI) to gain a contract specifically awarded to Service Disabled Veteran Owned Small Businesses (SDVOSBs).
The idea of a Service Disabled Veteran Owned Small Businesses (SDVOSBs) is that it is operated and managed by service-disabled United states veterans along with not being affiliated with a larger entity. The case brought against W.G. Mills was that the company setup what appeared to be a SDVOSB but was actually just a front for the larger company.
In a press statement, U.S. Attorney A. Lee Bentley III said, “Those who apply for federal contracts must be honest and forthright in their dealings, especially when seeking contracts set aside for service-disabled veterans. Working jointly with DOJ and our agency partners has allowed us to make substantial recoveries in these types of cases in recent months. Our office remains committed to pursuing these matters vigorously.”
The lawsuit was filed in the Middle District of Florida and is captioned United States ex rel. Michael Jeske and Samuel McIntosh v. Gilbane Building Company, W.G. Mills, Inc., and Veterans Constructors Inc., Case No. 8:11-cv-1205 (M.D. Fla.). The claims resolved by the settlement are allegations only; there has been no determination of liability.