State Crime Reports

Attorney General Madigan Reaches $1 Million Settlement with Suburban Construction Company for Falsifying Payroll Records on Public Works Projects

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Madigan’s Settlement Addresses Contractors’ Alleged Abuse of State’s Prevailing Wage Laws

Chicago –(ENEWSPF)—October 5, 2017.

Authored by: Office of Attorney General Madigan

Attorney General Lisa Madigan yesterday announced a $1 million settlement with A. Lamp Concrete Contractors Inc. (A. Lamp), a construction company based in suburban Schaumburg, for failing to comply with the state’s Prevailing Wage Act.

Lamp’s state contracts required it to pay workers on public works projects prevailing wages and provide the state with certified payroll records to demonstrate the wages were paid. Madigan alleged that between 2008 and 2014, A. Lamp submitted false payroll records that underreported the number of hours worked by certain workers to create the appearance the company was paying higher wage rates than it was.

“Our state’s prevailing wage laws are in place to protect both workers and law-abiding contractors,” Madigan said. “Skirting laws and putting Illinois workers at a disadvantage will not be tolerated.”

Madigan’s settlement is the result of an investigation conducted by her office under the Illinois False Claims Act, a mechanism of civil enforcement that empowers whistleblowers and prosecutors to take legal action against companies and individuals who defraud the government.

In January, a federal judge sentenced former A. Lamp vice-president and co-owner Joseph Lampignano to a 10-month prison term and one year of supervised release for the reported wage abuse. Lampignano pleaded guilty to mail fraud after the federal government charged him with having directed and caused the submissions of falsified payroll records.

Madigan’s investigation was jointly conducted by her Special Litigation Bureau and Workplace Rights Bureau. Special Litigation Bureau Chief Jeanne Witherspoon, Workplace Rights Bureau Chief Jane Flanagan and Assistant Attorneys General John Wolfsmith and Christopher J. Kim handled the case.