Asphalt Companies Will Pay $30M Total to Resolve False Claims Act Allegations
By the Constantine Cannon Whistleblower Team
Two Ohio-based asphalt companies agreed to pay $30 million to settle False Claims Act allegations that they submitted fraudulent test results to the Ohio Department of Transportation (ODOT) for federally funded asphalt projects in Ohio.[1]
What Will Each Company Pay?
Kokosing Materials, Inc. will pay $17.5 million to resolve allegations that it submitted false or fraudulent test results from 2012 to 2024. Barrett Paving Materials, Inc. will pay $12.5 million to resolve allegations that it submitted false or fraudulent asphalt test results between 2013 and 2025.
Ohio’s Construction and Materials Specifications require companies involved in asphalt projects to conduct specific mix design testing, referred to as Job Mix Formulas (JMFs). These companies must submit the test results for approval by ODOT before commencing asphalt work on federally funded projects. Additionally, they are required to carry out regular quality control tests while performing asphalt work on Ohio roadways.[2]
Comments on the Case
Elise Chawaga, Principal Assistant Inspector General for Investigations, U.S. Department of Transportation Office of Inspector General commented: “The settlements…underscore our unwavering commitment to keeping federally funded transportation projects in Ohio and across the nation free from fraud, waste, and abuse.” [3]
According to whistleblower attorney Dan Noel, “Taxpayers fund infrastructure projects with the expectation that contractors will meet strict safety and quality standards. When companies falsify quality results, they risk building roads that may not perform as designed. Whistleblowers are often the ones to come forward with valuable information about such fraud.”
Whistleblower-Initiated Case
The civil settlements resolve claims filed by individuals under the qui tam (or whistleblower provisions) of the False Claims Act. These provisions enable a private party, known as a relator, to initiate a lawsuit on behalf of the United States. While it is unknown what percentage of the government’s recovery the whistleblowers will receive in this case, whistleblowers can generally receive up to 30% of any monetary sanctions.
What is Government Contract Fraud?
Whistleblowers can bring cases involving fraud in government contracting, often referred to as procurement fraud. Contract fraud can arise across many industries, including defense contracting, infrastructure and public works, transportation projects, consulting and services contracts, information technology companies, subcontracting, and more.
Our Firm Helps Whistleblowers
Constantine Cannon has extensive experience representing whistleblowers under the False Claims Act. To learn about our whistleblower successes or what it means to be a whistleblower under the False Claims Act, please contact us. We will connect you with an experienced member of our whistleblower team for a free and confidential consultation.
Speak Confidentially With Our Whistleblower Attorneys
Sources:
[1] See https://www.justice.gov/usao-sdoh/pr/asphalt-companies-agree-pay-30-million-settle-false-claims-act-allegations
[2] Id.
[3] Id.
Tagged in: False Claims Act, qui tam,