Ohio Asphalt Companies to Pay $30M to Settle False Claim Act Allegations

Two asphalt companies have agreed to pay $30 million total to resolve False Claims Act allegations that they submitted fraudulent test results to the Ohio Department of Transportation (ODOT) for federally funded asphalt projects in Ohio.

Specifically, Kokosing Materials, Inc. will pay $17.5 million to resolve allegations that it submitted false or fraudulent asphalt test results from 2012 through 2024.

Barrett Paving Materials, Inc. will pay $12.5 million to resolve allegations that it submitted false or fraudulent asphalt test results from 2013 through 2025.

Ohio’s Construction and Materials Specifications require that companies performing asphalt projects must conduct certain mix design testing of their asphalt mixtures, known as Job Mix Formulas (JMFs). Companies are then required to submit the test results for ODOT to approve their proposed JMFs prior to beginning their asphalt work on federally funded projects. The companies are also required to conduct regular quality control tests as asphalt is being laid on Ohio roadways.

The settlements resolve allegations that, rather than performing these required mix design tests, the companies repeatedly submitted JMFs to ODOT containing data copied from prior JMFs. The settlements also resolve allegations that the companies submitted false quality control test results.

“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, U.S. Department of Transportation Office of Inspector General. “Through sustained coordination with our federal, state, law enforcement, and prosecutorial partners, we will continue to investigate misconduct and ensure that those responsible are held accountable.”

The civil settlements include the resolution of claims brought by individuals under the qui tam provisions of the False Claims Act. These provisions allow a private party, known as a relator, to file an action on behalf of the United States.

Source: DOJ

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Ohio