A Norwalk company will pay nearly a million dollars to the federal government to resolve allegations of false alarms for highway paint striping, according to a news release.
Rebecca C. Lutzko, U.S. attorney for the Northern District of Ohio, announced July 24 that Oglesby Construction Inc., headquartered in Norwalk, has agreed to pay the United States $942,146 to resolve allegations that it falsified material usage records while performing on federally subsidized contracts to apply paint striping to Ohio roadways between 2012 and 2018.
The allegations arise under the False Claims Act from a whistleblower complaint unsealed July 19, and in which the United States intervened July 14, according to the release.
The claims asserted against Oglesby are allegations only and there has been no determination of liability, the release said.
“The Justice Department is committed to eradicating fraud in all its forms to protect taxpayer dollars,” Lutzko said in the release. “We cannot tolerate conduct that bilks the government of funds to support vital government programs.”
The complaint alleges that Oglesby saved money on highway-striping contracts by failing to use sufficient marking material, including paint, to meet state or contractual minimum standards, the release said.
Oglesby allegedly use different methods to hide its conduct, according to the release.
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