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Published March 23, 2012, 05:34 PM

Feds File Suit Against EGF Contracting Firm

EAST GRAND FORKS, MN (WDAZ-TV) - The federal government filed a lawsuit against an East Grand Forks contracting firm for allegedly misleading two federal agencies to earn a $19.1 million contract for work on the city's flood protection system.

By: WDAZ Staff Report, WDAZ

EAST GRAND FORKS, MN (WDAZ-TV) - The federal government filed a lawsuit against an East Grand Forks contracting firm for allegedly misleading two federal agencies to earn a $19.1 million contract for work on the city's flood protection system.

The U.S. Attorney's Office in Minnesota filed suit on March 15 against R.J. Zavoral and Sons, accusing the firm of "repeatedly and knowingly" misleading the U.S. Army Corps of Engineers and the U.S. Small Business Administration.

The company formed a joint-venture with a smaller firm from Cass Lake that qualified for the contract, and allegedly promised that the smaller firm would get a significant share of the work on the Hartsville Coulee Diversion in East Grand Forks.

That did not happen, according to the complaint.

The contract was awarded in August 2004 and ran until 2008.

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