NASHVILLE, TENNESSEE (BNO NEWS) – A construction company violated the False Claims Act while under contract with the U.S. Army in Tennessee, prosecutors said Tuesday.

Circle C Construction, LLC (Circle C) infringed the Davis-Bacon Act requirements to pay electricians agreed-upon wages in constructing buildings at the Fort Campbell Army base, and was ordered to pay the United States $1,661,423.13 as treble damages.

Circle C contracted with the Army to construct buildings at Fort Campbell, agreeing to pay its electrical workers a base hourly rate of $19.19 plus fringe benefits of $3.94 per hour, but Circle C only paid electricians between $12 and $16 per hour.

In addition, Circle C submitted payroll certifications for its employees and for other subcontractors, except for its electrical subcontractor, Phase Tech, and falsely certified that they were paying the prevailing wages to employees that were required by the contract.

Once the lawsuit was filed, Circle C submitted payroll certifications to the Army for Phase Tech, but did not verify them as they contained inaccuracies.

“The United States Attorney’s Office will vigorously pursue allegations that government contractors have not dealt fairly with the United States and its agencies,” said U.S. Attorney Ed Yarbrough. “Moreover, businesses that contract with the government to pay prevailing wages to employees and contractors on government projects will be held to the letter of their agreement in order to protect local wage standards for the benefit of local workers.”

The case against Phase Tech was settled in June 2009, in which Phase Tech agreed to pay $15,000.00 in damages.