Two Ohio-based asphalt companies accused of submitting previous asphalt tests to the Ohio Dept. of Transportation for roadwork in the state will pay a combined $30 million to resolve the allegations under the federal False Claims Act.
Kokosing Materials Inc., which has locations throughout Ohio, will pay $17.5 million to settle charges that it submitted false or fraudulent asphalt test results from 2012 through 2024. Barrett Paving Materials Inc., based in Hamilton, Ohio, will pay $12.5 million to address the same allegations covering 2013 through 2025, says the U.S. Justice Dept.
Ohio’s construction and materials specifications require companies performing asphalt work to conduct mix-design testing of asphalt mixtures, known as Job Mix Formulas. Contractors must submit those test results to the state DOT for approval before beginning work on federally funded projects. Companies also must conduct regular quality-control testing as asphalt is placed on roadways.
The U.S. Attorney for the southern district of Ohio alleges that instead of performing the required mix design tests, the companies repeatedly submitted formulas using data copied from prior mix tests. Authorities also alleged the companies submitted false quality-control test results.
Lee Schloss, president of Kokosing Materials Inc., said in a statement that the company agreed to the no-fault settlement to avoid a costly civil case alleging "past issues with [the firm's] asphalt mix design laboratories, relating...
Two Ohio-based asphalt companies accused of submitting previous asphalt tests to the Ohio Dept. of Transportation for roadwork in the state will pay a combined $30 million to resolve the allegatio...