Miron Construction agrees to pay $4 million fine

The fine and other agreements settle investigation into improper billing practices

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April 30, 2014 | 10:15 pm

A Wisconsin construction company with offices in Cedar Rapids will pay a $4 million fine to end an FBI investigation into improper billing practices.

U.S. Attorney James Santelle publicly released a non-prosecution agreement in mid-April between the U.S. Attorneys Office for the Eastern District of Wisconsin and Neenah, Wis.-based Miron Construction Co. Inc.

Miron Construction has offices throughout Wisconsin, Iowa, Michigan and Minnesota. It reported more than $680 million in sales in 2013.

The construction company has been involved in building projects in the Corridor, including the Cedar Rapids convention center and DoubleTree by Hilton Hotel, the Hotel at Kirkwood Center, the Lowe Park Arts and Environment Center in Marion, the Marion Police Station and Fire Station No. 2 in Iowa City.

The agreement, which was signed in February, ends a multiyear FBI investigation into Miron’s billing practices and financial reporting practices in Wisconsin public school construction projects.

The non-prosecution agreement requires the company to appoint a monitor to oversee operations, pay a $4 million fine to the federal government, which will be used to compensate five separate school districts, disclose labor rates, replace its accounting and auditing firm, and adopt a document retention policy.

The City of Cedar Rapids said Miron was selected through the Public Improvement bidding criteria, but would not comment on any litigation regarding the company.

Santelle said in a news release that the agreement helped protect the jobs of 1,200 Miron employees “who were uninvolved in and unaware of the allegations that prompted the FBI investigation.

“If this matter had proceeded into a litigation posture, the jobs of all of those employees and those of many other individuals with jobs dependent on the business that Miron generates would be in peril,” he said.

Calls to the company were not returned.

l Comments: (319) 398-8331; chelsea.keenan@sourcemedia.net; (319) 368-8610; forrest.saunders@kcrg.com

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