Ohio Asphalt Companies to Pay $30 Million for Falsified Road Test Results

Two major Ohio asphalt companies have agreed to pay a combined $30 million to settle False Claims Act allegations involving fraudulent test results submitted to the Ohio Department of Transportation (ODOT) for federally funded road projects.

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

The settlement, announced by the United States Attorney’s Office for the Southern District of Ohio, follows a comprehensive investigation into quality control practices at both companies, which are major players in Ohio’s road construction industry.

“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.

According to investigators, both companies were required under Ohio’s Construction and Materials Specifications to conduct specific mix design testing of their asphalt mixtures, known as Job Mix Formulas (JMFs). These test results must be submitted to ODOT for approval before any asphalt work begins on projects receiving federal funding. Additionally, the companies were obligated to perform regular quality control tests during the actual road construction process.

The investigation revealed that instead of conducting new tests as required, the companies allegedly submitted JMFs to ODOT containing recycled data from previous tests. The settlement also resolves allegations that both companies submitted falsified quality control test results during the construction phase.

These practices potentially compromised the integrity and safety of road infrastructure throughout Ohio, as proper material testing is essential to ensure highways and roads meet durability and safety standards.

Ohio Inspector General Randall Meyer praised the outcome, stating, “I applaud our federal partners for holding companies accountable and protecting the integrity of state contracts.”

The case came to light through whistleblowers who filed claims under the qui tam provisions of the False Claims Act. This legal mechanism allows private individuals to file lawsuits on behalf of the United States when they have knowledge of entities defrauding the government. Whistleblowers in successful cases are typically entitled to receive a portion of the recovered funds.

Federal Highway Administration Administrator Sean McMaster highlighted the significance of the settlement, stating, “I commend Department of Justice attorneys, USDOT’s Inspector General and the Ohio Inspector General’s Office for going after bad actors, ensuring the integrity of the Federal-aid highway program, and protecting taxpayer dollars.”

The investigation was conducted jointly by agents from the U.S. Department of Transportation Office of Inspector General and investigators from the Office of the Ohio Inspector General. The United States was represented by Civil Chief Matthew J. Horwitz and Assistant United States Attorneys Linda Mindrutiu and Brandi Stewart.

This settlement represents one of the larger False Claims Act resolutions in Ohio’s construction sector in recent years and sends a strong message to contractors working on federally funded infrastructure projects about the consequences of cutting corners on quality control measures.

The case highlights ongoing federal and state efforts to ensure taxpayer dollars allocated for infrastructure are properly spent on materials and construction that meet established quality and safety standards.