Construction Firm Pays $2.5M Over Alleged Small Biz Fraud

Law360 (April 21, 2021, 6:24 PM EDT) -- A California construction firm paid the federal government $2.5 million to resolve allegations that it fraudulently took on contracting work set aside for a service-disabled, veteran-owned small business program, the U.S. Department of Justice said.

The Justice Department and Stronghold Engineering Inc. struck a civil settlement and nonprosecution agreement that requires Stronghold to maintain an ethics and compliance program for two years.

"The claims resolved by the civil settlement are allegations only and there has been no determination of liability," the Justice Department said Tuesday.

Dan Rasmussen, Stronghold's outside general counsel, said in a Wednesday statement to Law360 that the company had...

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