The following announcement was provided by the Massachusetts Attorney General’s Office:
The Massachusetts Attorney General’s Office (AGO) announced it has reached a settlement with Avatar Construction Corporation (Avatar), a construction company based in Watertown, MA, and its owner, Nazar Vincent. The settlement resolves a lawsuit filed by the AGO, alleging that the company violated the Massachusetts False Claims Act (MFCA) in connection with prevailing wage theft when it and a subcontractor allegedly underpaid workers on five municipal construction projects in Cambridge, Lawrence, Saugus, and Watertown.
In accordance with the settlement, Avatar has paid $320,000 to the Commonwealth, allowing the state to pay approximately $172,000 in restitution to impacted workers.
The AGO’s March 2023 lawsuit alleged that on five municipal public construction projects, Avatar used 68 fraudulent payroll forms, prepared by its subcontractor, Gonza Construction, Inc. of Worcester, to certify compliance with the Massachusetts Prevailing Wage Law, when in fact, workers on the projects were paid less than half of what they were owed. The AGO alleged that in addition to being fraudulent, the payroll forms contained widespread flagrant errors.
The Massachusetts Prevailing Wage Law sets the minimum hourly wage rates allowable for certain classifications of workers on public construction projects in the Commonwealth. The law requires submittal of weekly certified payroll forms as an express condition of payment on most public contracts. Under the Prevailing Wage Law, it is unlawful for subcontractors to use false records that are substantively related to a payment claim without making a reasonable effort to ensure such records are accurate.
Last fall, the AGO announced the issuance of a judgment in a similar prevailing wage lawsuit filed by the Office against BPI Construction Corporation of Framingham.
