SAINT PAUL — Minnesota Attorney General Keith Ellison announced that Anderson Brothers Construction Company of Brainerd LLC will pay nearly $1.3 million to settle claims that it falsified quality control test results for road paving materials submitted to state and federal agencies. The company was accused of violating both the federal and Minnesota False Claims Acts by reporting fraudulent data to secure higher payments under government-funded construction contracts between 2017 and 2022.
As part of the civil settlement, Anderson Brothers agreed to pay $1,295,610 — with $660,761 going to the federal government and $634,849 to the State of Minnesota. The settlement stems from a whistleblower lawsuit filed under the False Claims Act by Kacie Dixon, a former Bituminous Mix Technician at the company, who exposed the alleged misconduct.
“Minnesotans expect their hard-earned tax dollars to go to things like roads, bridges, schools, and public safety, not into the pockets of corrupt contractors,” said Attorney General Ellison. “My thanks go out to whistleblowers like Kacie Dixon who help us fight fraud and protect our public resources. Let this serve as yet another warning that I will not hesitate to civilly prosecute those who cheat the taxpayers of Minnesota.”
Falsified Test Results Meant Bigger Profits
According to court documents, Anderson Brothers was required to conduct and submit quality tests on its paving materials as a condition for receiving payment for state and federally funded construction contracts. These tests determined whether the company qualified for financial bonuses for superior quality or incurred deductions for subpar work.
Investigators found that Anderson Brothers knowingly manipulated test results to make their paving materials appear of higher quality than they actually were — resulting in inflated payments from the government.
Enhanced Oversight and Compliance Measures
Beyond the financial settlement, Anderson Brothers has agreed to strict injunctive terms. The company will:
- Be permanently prohibited from manipulating test results.
- Provide mandatory training for employees.
- Implement a corporate code of ethics and general compliance program.
- Create a quality assurance/quality control program overseen by a dedicated Corporate Compliance Officer.
- Be subject to ongoing compliance monitoring by the Minnesota Department of Transportation during the upcoming construction season. Joint Investigation
The resolution is the result of a collaborative investigation involving the Minnesota Attorney General’s Office, the Minnesota Department of Transportation, the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Minnesota, and the Office of Inspector General for the U.S. Department of Transportation.
Reporting Fraud
The Attorney General’s Office encourages the public to report concerns about the misuse of public funds. Complaints can be submitted online or by phone at (651) 296-3353 in the Twin Cities or (800) 657-3787 from Greater Minnesota.
Case Title: United States of America and State of Minnesota ex rel. Dixon v. Anderson Brothers Construction Company of Brainerd, LLC
Civil Action No.: 22-sc-02078 (D. Minn.)
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