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Based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Seattle Office of Labor Relations, the Office of Inspector General (OIG) performed a review of certain payrolls of the owner of Civic Construction, LLC, of Portland, OR.   The payrolls were subject to the Davis-Bacon Act. We completed the review and referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act of 1986 (PFCRA).

On October 7, 2014, HUD’s Office of Program Enforcement issued a complaint to Civic Construction and its owner alleging that they were liable for 17 civil penalties of $7,500 each under PFCRA.  To arrive at a mutually satisfactory resolution of the matter without the expense and uncertainty of further litigation, Civic Construction and its owner agreed to pay HUD $34,000.  The settlement agreement did not constitute an admission of liability or fault by any party.