Editor’s note: This story has been updated to include comment from Manafort Brothers.
Plainville contractor Manafort Brothers Inc. will pay a $2.4 million federal fine and undergo independent monitoring for lying about its use of minority contractors on a state highway project, authorities say.
The Connecticut U.S. Attorney’s office and other state and federal investigators announced Monday Manafort’s agreement to settle its role in a criminal and civil probe into the corporation’s misconduct surrounding the relocation of Route 72 in Bristol, work that dated to April 2007.
According to investigators, Manafort admitted lying to the state Transportation Department about its use of socially and economically disadvantaged contractors for its $39.7 million roadwork contract.
Manafort claimed that it met federal requirements on the use of minority contractors for 4.2 miles of highway- and secondary-road work, when it fact it did not, prosecutors said. Use of such disadvantaged contractors is a condition of federal taxpayer-funded bids.
In addition to the fine, Manafort must hire an ethics/compliance officer; set up a compliance committee that meets regularly to review and address “disadvantaged business enterprise” (DBE) issues; and install software to track qualified DBE firms, authorities said.
The firm also agreed to “remove the Manafort personnel directly involved in the misconduct” and continue to aid authorities in their ongoing probe. Those personnel weren’t identified.
Manafort said Tuesday morning that it “respectfully disagrees with aspects of the government’s characterization of the company’s shortcomings in this matter,” but acknowledged that it needed to improve its compliance processes.
Manafort said the changes it made as a result of the settlement have made the company “presently responsible” under Federal Highway Administration rules. The designation is a requirement for federal contractors.
