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Two Ohio asphalt companies have agreed to pay $30 million to settle False Claims Act allegations regarding fraudulent testing data on federal highway projects, the U.S. Department of Justice announced Wednesday.
The settlement marks one of the largest penalties imposed on road construction contractors in recent years, highlighting the government’s intensified scrutiny of infrastructure project compliance. According to Justice Department officials, the companies submitted falsified materials testing data for asphalt mixtures used on numerous federally funded highway projects across Ohio between 2018 and 2024.
Federal investigators discovered the fraud during routine quality assurance reviews when inspectors noticed inconsistencies in strength and durability metrics reported by the contractors. Subsequent forensic analysis revealed systematic manipulation of test results to meet contractual specifications while using substandard materials that failed to meet federal highway standards.
“Infrastructure integrity is a public safety issue, not just a contractual obligation,” said Assistant Attorney General Brian Nelson in a statement. “When contractors knowingly falsify testing data to cut corners, they not only defraud taxpayers but potentially endanger the public who rely on safe roadways.”
The investigation, led by the DOJ’s Civil Division in collaboration with the Department of Transportation’s Office of Inspector General, determined that the companies’ actions may have compromised the structural integrity of dozens of highway segments constructed between 2018 and 2023.
The settlement agreement requires the companies to implement comprehensive compliance programs and submit to third-party monitoring for five years. Additionally, key executives must complete specialized ethics training, and the companies must invest in new quality control systems with enhanced oversight mechanisms.
Highway safety experts note that substandard asphalt can lead to premature deterioration, increased maintenance costs, and safety hazards. The American Society of Civil Engineers estimates that every dollar saved through fraudulent construction practices can result in up to ten dollars in repair and replacement costs over a highway’s lifespan.
“This case exemplifies why rigorous quality assurance is essential in public infrastructure projects,” said Professor Eleanor Richards, a civil engineering specialist at Ohio State University. “The potential long-term consequences of using inferior materials extend far beyond the immediate financial fraud. We’re talking about roads that may fail years earlier than their designed lifespan.”
The settlement comes amid increased federal spending on infrastructure following the passage of the Bipartisan Infrastructure Law, which allocated over $110 billion specifically for roads and bridges. This heightened investment has been accompanied by stronger enforcement actions against contractor fraud.
The Ohio Department of Transportation has launched comprehensive evaluations of all potentially affected highway sections to assess their structural integrity. Early estimates suggest remediation work could cost taxpayers an additional $45 million beyond the settlement amount, though the companies have not admitted liability for these potential repairs as part of the agreement.
Whistleblower protections played a critical role in uncovering the scheme. A former quality control technician at one of the companies initially reported the suspicious testing practices through the DOT’s confidential reporting system, triggering the multi-agency investigation.
Industry analysts suggest this case may represent the beginning of a broader crackdown on construction material fraud. The Federal Highway Administration recently enhanced its testing protocols and increased unannounced site inspections by 40 percent compared to previous years.
“This settlement sends a clear message to the entire construction industry,” said U.S. Attorney Kenneth Parker for the Southern District of Ohio. “We will vigorously pursue companies that compromise public safety and waste taxpayer dollars through fraudulent practices.”
The settlement does not preclude potential criminal charges against individual executives if further investigation warrants such action, according to DOJ officials familiar with the case.
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7 Comments
It’s troubling to see asphalt companies intentionally using substandard materials and manipulating test results to meet contract specifications. Taxpayer money should fund high-quality, durable roads, not shoddy construction. Glad the government caught this scheme and imposed a hefty penalty.
Absolutely. Falsifying data to cut corners on crucial infrastructure is unacceptable. The public deserves safe, reliable roads, not risky cost-cutting measures.
This is a concerning case of contractors falsifying testing data to cut corners on infrastructure projects. Maintaining safety and quality standards for federal highway work should be a top priority, even if it means higher costs. Hopefully this sizable settlement sends a clear message that such fraud will be aggressively pursued.
Kudos to the government investigators for uncovering this asphalt testing fraud scheme. Holding contractors accountable for such blatant violations is important for preserving the integrity of federal highway projects. This hefty penalty should deter similar misconduct in the future.
This is a cautionary tale for all infrastructure contractors. Integrity and transparency around materials testing are essential, even if it means slightly higher project costs. The risk of getting caught and facing massive penalties like this is simply not worth it.
Well said. Falsifying test data is a serious breach of public trust. Contractors need to understand that the government will pursue these cases aggressively to protect taxpayer investments and ensure infrastructure safety.
The $30 million settlement highlights just how severe the consequences can be for defrauding the government on infrastructure projects. This should serve as a wake-up call for any contractors tempted to cut corners or falsify data. Maintaining quality and compliance is crucial, even if it cuts into profits.