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Two Asphalt Companies Pay $30 Million to Settle Fraud Allegations in Ohio Road Projects
Two major asphalt contractors have agreed to pay a combined $30 million to resolve allegations of submitting fraudulent testing results on federally funded road projects across Ohio, federal authorities announced Wednesday.
Kokosing Materials, Inc. will pay $17.5 million to settle claims covering a twelve-year period from 2012 to 2024, while Barrett Paving Materials, Inc. agreed to a $12.5 million settlement for similar allegations spanning 2013 through 2025.
The settlement addresses accusations that both companies systematically falsified required quality control testing data on highway construction projects administered by the Ohio Department of Transportation (ODOT). These projects received significant federal funding through the Department of Transportation.
Federal investigators found that the companies allegedly submitted Job Mix Formulas (JMFs) containing data copied from previous tests rather than conducting new testing as required by Ohio’s Construction and Materials Specifications. These regulations mandate that contractors perform mix design testing before beginning construction and submit ongoing quality control testing during asphalt installation.
“The integrity of our nation’s infrastructure depends on contractors honestly fulfilling their obligations,” said Elise Chawaga, Principal Assistant Inspector General for Investigations with the U.S. Department of Transportation Office of Inspector General. “These settlements underscore our unwavering commitment to keeping federally funded transportation projects free from fraud, waste, and abuse.”
The case highlights significant concerns about quality control in highway construction. Asphalt testing requirements exist to ensure road materials meet durability and safety standards. When contractors falsify these tests, it potentially compromises the longevity and performance of critical transportation infrastructure.
Ohio Inspector General Randall Meyer emphasized the importance of maintaining trust in government contracting. “These settlements help protect the integrity of our state contracts and ensure taxpayers get what they pay for when it comes to infrastructure projects,” Meyer stated.
The settlements also resolve claims brought under the qui tam provisions of the False Claims Act, which allows whistleblowers to file lawsuits on behalf of the federal government. These provisions have become increasingly important in exposing fraud in government contracting.
Federal Highway Administrator Sean McMaster noted that the settlements reflect the agency’s commitment to accountability. “Every dollar allocated for highway projects must be properly spent,” McMaster said. “These actions help safeguard taxpayer dollars and maintain public confidence in our transportation infrastructure.”
The investigation was conducted jointly by the U.S. Department of Transportation Office of Inspector General and the Ohio Inspector General’s Office, with the U.S. Attorney’s Office for the Southern District of Ohio representing the federal government.
The case comes amid growing scrutiny of infrastructure spending nationwide. With the recent passage of the Bipartisan Infrastructure Law allocating billions for road improvements, federal authorities have stepped up oversight of highway construction projects to prevent similar fraudulent activities.
Industry analysts note that competition among asphalt contractors has intensified in recent years, potentially creating incentives for companies to cut corners on testing requirements to reduce costs and secure contracts. The settlements with Kokosing and Barrett, two of Ohio’s largest asphalt providers, send a strong message to the industry about compliance expectations.
Both companies maintain significant operations throughout Ohio and neighboring states. Kokosing Materials is part of the larger Kokosing, Inc. group, one of the Midwest’s largest construction companies, while Barrett Paving has been a major player in Ohio’s infrastructure projects for decades.
Federal officials emphasized that the settlements resolve allegations only, and there has been no formal determination of liability. Neither company has publicly admitted wrongdoing as part of the agreement.
The settlement funds will be returned to federal highway programs to support future infrastructure projects in Ohio and across the country.
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11 Comments
Wow, $30 million is a hefty settlement. Falsifying test results on road projects is a serious breach of trust and safety. I hope this serves as a strong deterrent to other contractors who may be tempted to cut corners.
Agreed, this type of fraud undermines the integrity of critical infrastructure projects. It’s good to see the authorities taking strong action to hold these companies accountable.
Taxpayers deserve transparency and quality work on federally funded road projects. This settlement highlights the importance of rigorous oversight to prevent waste, fraud, and abuse.
Absolutely. Hopefully this case sends a clear message that falsifying test data will not be tolerated, and encourages more vigilant monitoring of construction projects.
This settlement highlights the importance of having strong whistleblower protections and incentives in place. Employees who come forward with information about fraud should be encouraged and rewarded for their courage.
I’m curious to know if this type of fraudulent behavior is more widespread in the asphalt/construction industry, or if this was an isolated incident. Either way, it’s concerning and I hope stricter regulations and oversight can prevent future abuses.
That’s a good point. Investigating the potential for broader systemic issues could help identify and address any underlying problems in the industry.
This case is a reminder that even large, established companies can succumb to the temptation to cut corners for financial gain. Vigilance is required at all levels to maintain the integrity of public infrastructure projects.
As a frequent driver in Ohio, I’m glad to see these companies being held responsible. Proper road construction and maintenance is crucial for public safety. Kudos to the investigators for uncovering this fraud.
While the $30 million penalty seems substantial, I hope the settlement also includes provisions for the companies to improve their internal quality control and testing procedures going forward. Preventing future fraud is just as important as punishing past misdeeds.
Agreed, the long-term impact will depend on whether the companies make meaningful reforms to their practices and culture. Oversight and monitoring should continue even after the settlement.