Ohio Asphalt Companies Agree to $30 Million Settlement Over False Claims Allegations

Two asphalt companies in Ohio have agreed to pay a combined $30 million to settle allegations of submitting fraudulent test results on federally funded road projects, according to the U.S. Department of Justice.

Kokosing Materials, Inc. will pay $17.5 million to resolve claims that it submitted false asphalt test results from 2012 through 2024. Barrett Paving Materials, Inc. agreed to pay $12.5 million to settle similar allegations covering the period from 2013 through 2025.

The settlement addresses violations of the False Claims Act, a federal law that imposes liability on individuals and companies who defraud governmental programs. According to authorities, both companies systematically misrepresented compliance with Ohio’s road construction standards on projects that received federal funding.

Under Ohio’s Construction and Materials Specifications, asphalt contractors must conduct specific mix design testing of their asphalt mixtures, known as Job Mix Formulas (JMFs), before beginning roadwork. These test results must be submitted to and approved by the Ohio Department of Transportation (ODOT) prior to commencing any federally funded project. Additionally, companies must perform ongoing quality control tests while asphalt is being laid.

Federal investigators discovered that rather than conducting required tests, both companies repeatedly copied data from previous JMFs and submitted these recycled results as if they were new tests. The settlements also address allegations that the companies fabricated quality control test results during project execution.

“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,” said Elise Chawaga, Principal Assistant Inspector General for Investigations at the U.S. Department of Transportation Office of Inspector General.

The case highlights ongoing concerns about quality control in infrastructure projects. The construction industry in Ohio represents a significant economic sector, with the state allocating over $2 billion annually for road construction and maintenance. Federal funding supplements these efforts, particularly for interstate highways and major thoroughfares.

Asphalt quality testing is critical to ensure road durability and safety. Properly tested asphalt mixtures help prevent premature road deterioration, which can lead to increased maintenance costs and safety hazards. The fraudulent practices alleged in this case potentially compromised the integrity of numerous roadways across the state.

The settlements also resolve claims brought under the qui tam provisions of the False Claims Act, which allow private individuals, known as relators, to file lawsuits on behalf of the government. These whistleblower provisions incentivize individuals with knowledge of fraud to come forward, and relators typically receive a portion of any recovered funds.

While the settlement resolves the civil claims against Kokosing Materials and Barrett Paving, the agreements do not address whether either company will face additional penalties, such as temporary disqualification from future government contracts.

The Ohio case is part of a broader national effort to combat fraud in infrastructure projects. In recent years, the Department of Justice has intensified scrutiny of contractors involved in federally funded construction, particularly as the government increases infrastructure spending.

Industry experts note that the substantial settlement amounts reflect the seriousness with which federal authorities view quality control violations in infrastructure projects. The case serves as a warning to other contractors that shortcuts in testing protocols can result in significant financial penalties.

Neither Kokosing Materials nor Barrett Paving has issued public statements regarding the settlements. Both companies remain significant players in Ohio’s construction industry despite the settlement agreements.

The DOJ’s announcement did not specify which specific road projects were affected by the fraudulent testing practices or whether remediation work would be required on any completed roadways.