Ohio Asphalt Firms Agree to $30M Settlement Over False Claims Act Violations

Two asphalt companies have reached a settlement to pay a total of $30 million in response to allegations under the False Claims Act. These allegations claim that the companies submitted fraudulent test results to the Ohio Department of Transportation (ODOT) for asphalt projects funded by federal dollars.

Kokosing Materials, Inc. will contribute $17.5 million to settle claims that it provided false or misleading asphalt test results from 2012 through 2024. Meanwhile, Barrett Paving Materials, Inc. will pay $12.5 million to resolve similar allegations spanning from 2013 to 2025.

According to Ohio’s Construction and Materials Specifications, companies engaged in asphalt projects are mandated to conduct specific mix design testing of their asphalt mixtures, referred to as Job Mix Formulas (JMFs). Before commencing work on federally funded projects, these companies must submit their test results to ODOT for approval. Additionally, they are required to perform regular quality control tests while asphalt is being laid on Ohio roadways.

The settlements address claims that instead of conducting the necessary mix design tests, both companies repeatedly submitted JMFs to ODOT that contained data copied from previous submissions. Furthermore, the settlements also resolve allegations that they provided false quality control test results.

“The settlements announced today underscore our unwavering commitment to keeping federally funded transportation projects in Ohio and across the nation free from fraud, waste, and abuse,” stated Elise Chawaga, Principal Assistant Inspector General for Investigations at the U.S. Department of Transportation Office of Inspector General. “Through sustained coordination with our federal, state, law enforcement, and prosecutorial partners, we will continue to investigate misconduct and ensure that those responsible are held accountable.”

The civil settlements also encompass claims brought by individuals under the qui tam provisions of the False Claims Act. This legal framework allows private parties, known as relators, to file actions on behalf of the United States.

Source: DOJ

Topics
Ohio

Two asphalt companies have reached a settlement to pay a total of $30 million in response to allegations under the False Claims Act. These allegations claim that the companies submitted fraudulent test results to the Ohio Department of Transportation (ODOT) for asphalt projects funded by federal dollars.

Kokosing Materials, Inc. will contribute $17.5 million to settle claims that it provided false or misleading asphalt test results from 2012 through 2024. Meanwhile, Barrett Paving Materials, Inc. will pay $12.5 million to resolve similar allegations spanning from 2013 to 2025.

According to Ohio’s Construction and Materials Specifications, companies engaged in asphalt projects are mandated to conduct specific mix design testing of their asphalt mixtures, referred to as Job Mix Formulas (JMFs). Before commencing work on federally funded projects, these companies must submit their test results to ODOT for approval. Additionally, they are required to perform regular quality control tests while asphalt is being laid on Ohio roadways.

The settlements address claims that instead of conducting the necessary mix design tests, both companies repeatedly submitted JMFs to ODOT that contained data copied from previous submissions. Furthermore, the settlements also resolve allegations that they provided false quality control test results.

“The settlements announced today underscore our unwavering commitment to keeping federally funded transportation projects in Ohio and across the nation free from fraud, waste, and abuse,” stated Elise Chawaga, Principal Assistant Inspector General for Investigations at the U.S. Department of Transportation Office of Inspector General. “Through sustained coordination with our federal, state, law enforcement, and prosecutorial partners, we will continue to investigate misconduct and ensure that those responsible are held accountable.”

The civil settlements also encompass claims brought by individuals under the qui tam provisions of the False Claims Act. This legal framework allows private parties, known as relators, to file actions on behalf of the United States.

Source: DOJ

Topics
Ohio