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Ohio asphalt companies will pay a combined $30 million to resolve allegations that they falsified test results for federally funded road projects, according to the U.S. Justice Department.
Kokosing Materials Inc., which operates multiple locations across Ohio, agreed to pay $17.5 million to settle charges that it submitted false or fraudulent asphalt test results from 2012 through 2024. Hamilton-based Barrett Paving Materials Inc. will pay $12.5 million to address similar allegations covering the period from 2013 through 2025.
The case centers on required testing procedures for asphalt used in federal highway projects. Under Ohio’s construction and materials specifications, companies performing asphalt work must conduct mix-design testing of asphalt mixtures, known as Job Mix Formulas, and submit those results to the state Department of Transportation for approval before beginning work on federally funded projects.
Additionally, contractors are required to perform regular quality-control testing as asphalt is placed on roadways to ensure the material meets specifications throughout the construction process.
According to the U.S. Attorney for the Southern District of Ohio, both companies allegedly circumvented these requirements. Instead of performing new mix design tests as required, the companies repeatedly submitted formulas using data copied from prior mix tests. The authorities also alleged that the companies submitted falsified quality-control test results during construction.
These requirements are not merely bureaucratic hurdles. They serve as critical quality assurance measures designed to ensure that roads built with federal funds meet safety standards and will perform as expected throughout their intended lifespan. Falsified testing undermines these safeguards and potentially compromises infrastructure integrity.
Lee Schloss, president of Kokosing Materials Inc., defended his company in a statement, describing the settlement as a no-fault agreement reached to avoid a costly civil case. The allegations, according to Schloss, pertained to “past issues with [the firm’s] asphalt mix design laboratories, relating to paperwork and testing procedures.”
“The agreement includes no admission or finding of liability,” Schloss emphasized, adding that the company “stands by the quality of its products.” He indicated that Kokosing opted to resolve the dispute to “avoid the time and expense of potential litigation, so that it can continue to focus on making compliant, quality asphalt products.”
The Ohio Department of Transportation and Barrett Paving Materials did not immediately respond to requests for comment on the settlement.
The case came to light through the qui tam provisions of the federal False Claims Act, which allow private individuals, known as relators, to file lawsuits on behalf of the United States government when they believe fraud has been committed against federal programs or contracts. These whistleblowers can receive a portion of any recovered funds, incentivizing insiders to report suspected fraud.
This settlement highlights ongoing concerns about quality control in infrastructure projects that utilize federal funding. The asphalt industry in Ohio represents a significant sector in the state’s construction economy, with numerous federal highway projects dependent on these materials.
The $30 million settlement is substantial for the regional construction materials industry and sends a clear message about the serious consequences of falsifying test data on federally funded projects. It also underscores the government’s commitment to ensuring taxpayer dollars are spent on infrastructure that meets established quality standards.
Federal and state transportation authorities continue to emphasize the importance of rigorous testing protocols in ensuring the longevity and safety of America’s roadways, particularly as the nation embarks on a period of significant infrastructure investment following recent federal legislation.
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14 Comments
The $30 million settlement over asphalt testing fraud allegations is concerning. It’s troubling to see companies cutting corners on critical safety tests for federally funded road projects. I hope this case prompts a thorough review of industry practices and leads to stronger oversight to protect the public interest.
Me too. Falsifying test results puts people’s lives at risk. Hopefully this serves as a wake-up call for the asphalt industry to prioritize ethics and transparency over profits. Robust quality control measures are a must for any company working on public infrastructure.
Interesting to see these asphalt companies agree to a $30 million settlement over fraud allegations. Falsifying test results for federally funded road projects is a serious breach of trust. Curious to learn more about the specific testing procedures they failed to follow.
I agree, this highlights the importance of proper oversight and compliance for companies working on critical infrastructure projects. It’s good to see the government taking these allegations seriously and securing a substantial settlement.
This is a significant settlement over allegations of asphalt testing fraud. It’s alarming to think that companies may have been submitting false results for federally funded road projects. Proper materials testing is essential for ensuring the safety and longevity of our transportation infrastructure. I hope this case leads to meaningful reforms in the industry.
Absolutely. Accountability is crucial, especially for contractors handling public funds. This settlement should prompt a thorough industry-wide review of testing protocols and quality control measures to prevent such unethical practices from occurring again.
The $30 million settlement over asphalt testing fraud is a concerning development. Falsifying results for federally funded road projects is a serious breach of trust and public safety. I’m glad to see the authorities taking these allegations seriously and holding the companies responsible. This should serve as a wake-up call for the industry to strengthen its compliance and oversight measures.
I agree, this case highlights the need for more robust regulation and auditing in the asphalt and road construction sectors. Cutting corners on materials testing can have devastating consequences for infrastructure integrity and public wellbeing. Hopefully this leads to industry-wide reforms to prioritize ethics and transparency.
It’s disheartening to see these allegations of fraud in the asphalt industry. Falsifying test results is a serious breach of public trust. I’m glad the authorities were able to uncover this and hold the companies responsible through a substantial settlement. This should serve as a wake-up call for the industry to strengthen its quality control and oversight measures.
You’re right, this case highlights the need for more robust regulatory oversight and auditing in the asphalt and road construction sectors. Cutting corners on materials testing can have dire consequences for public safety and infrastructure integrity.
This is a concerning development in the asphalt industry. Falsifying test results for federally funded projects is a major breach of trust and raises questions about the overall quality and safety of our roads and highways. I hope the $30 million settlement sends a strong message and leads to industry-wide reforms to prevent future incidents of this nature.
Agreed. Proper testing and quality control are essential for ensuring the integrity of our transportation infrastructure. This settlement should motivate other companies to scrutinize their own practices and implement more rigorous compliance measures.
This case underscores the need for rigorous quality control in the asphalt and road construction industry. Falsifying test results puts public safety at risk and undermines the integrity of our transportation system. I hope this settlement serves as a deterrent to other companies considering similar unethical practices.
Absolutely. Accountability is crucial, especially for contractors working on federally funded projects. Hopefully this sends a strong message that fraudulent behavior will not be tolerated.