Fridley Contractor To Pay $5.9M For Alleged Fraud In USPS Repair Deals

FRIDLEY, MN — The Morcon Construction Company, a Fridley, Minnesota-based general contractor established in 1982, has agreed to pay $5.9 million to settle allegations of violating the False Claims Act, according to U.S. Attorney Andrew M. Luger.

Authorities said that the company handled repair, maintenance, and related work for U.S. Postal Service sites across Minnesota and beyond.

Prosecutors claim that since January 2016, Morcon knowingly hid its use of subcontractors for repairs and maintenance, falsely claimed it did the work itself, and submitted fake subcontractor invoices as part of its billing process.

Prosecutors said Morcon’s fraudulent conduct resulted in millions of dollars of false claims paid by USPS.

"We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program," said Executive Special Agent in Charge Kenneth Cleevely of USPS Office of Inspector General.

"Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service. This settlement demonstrates that the USPS OIG will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers."