Roads
Asphalt Companies Pay $30M to Resolve False Testing Allegations in Ohio
U.S. Attorney in the state contended that Kokosing Materials and Barrett Paving Materials submitted false asphalt test results to the state Dept. of Transportation
Two asphalt companies in Ohio performing road paving similar to the type shown here were each alleged to have repeatedly submitted asphalt formulas using data copied from prior mix tests.
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 to paperwork and testing procedures.” He said the agreement “includes no admission or finding of liability” and that the firm “stands by the quality of its products,” but that it opted to resolve the dispute to “avoid the time and expense of potential litigation, so that it can continue to focus on making compliant, quality asphalt products.” The state DOT and Barrett Paving Materials did not immediately respond to requests for comment.
The civil settlements resolve claims brought by individuals under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to file lawsuits on behalf of the U.S.
