Novum Structures LLC, a Wisconsin based construction company, has agreed to pay a $3 million fine and enter a guilty plea for violating the “Buy America” provisions of contracts for federally funded construction projects. This includes a $500,000 criminal fine and $2.5 million to resolve civil allegations under the FCA that it submitted false claims for payment on several projects between January 1, 2004 and July 11, 2013. Novum also allegedly repackaged materials, falsified documents to conceal the use of noncompliant foreign materials and demanded that its’ employees lie if questioned about the products. As part of the settlement, Novum also will be debarred from involvement in federally funded projects.
The case against Novum was filed in 2012 by Brenda King under the whistleblower provisions of the FCA. King will receive approximately $400,000 of the $2.5 million that Novum will pay to settle the fraud claims.