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Two Asphalt Companies to Pay $30 Million to Settle Fraud Allegations on Ohio Road Projects

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Two Asphalt Companies to Pay $30 Million to Settle Fraud Allegations on Ohio Road Projects

CINCINNATI — Two asphalt companies have agreed to pay a combined $30 million to resolve allegations that they submitted fraudulent testing results for federally funded road projects in Ohio, federal officials announced Wednesday.

Under the settlements, Kokosing Materials, Inc. will pay $17.5 million to resolve allegations that it submitted false or fraudulent asphalt test results between 2012 and 2024. Barrett Paving Materials, Inc. will pay $12.5 million to resolve similar allegations covering the period from 2013 through 2025.

The settlements stem from allegations that the companies failed to perform required asphalt mix testing for projects overseen by the Ohio Department of Transportation (ODOT).

Allegations Involved Testing Requirements

Ohio’s Construction and Materials Specifications require asphalt contractors working on federally funded projects to conduct mix design testing — known as Job Mix Formulas (JMFs) — before work begins. The results must be submitted to ODOT for approval. Contractors are also required to conduct ongoing quality control testing while asphalt is being installed on roadways.

According to the U.S. Attorney’s Office for the Southern District of Ohio, the companies allegedly submitted JMFs containing data copied from prior tests instead of performing new required testing. The settlements also resolve allegations that false quality control test results were submitted during active road construction.

Federal and State Officials Respond

“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 with the U.S. Department of Transportation Office of Inspector General.

Ohio Inspector General Randall Meyer said the settlements protect the integrity of state contracts, while Federal Highway Administration Administrator Sean McMaster said the action ensures accountability and safeguards taxpayer dollars.

Whistleblower Provisions Involved

The civil settlements also resolve claims brought under the qui tam provisions of the False Claims Act, which allow private individuals — known as relators — to file lawsuits on behalf of the federal government.

The case was investigated jointly by the U.S. Department of Transportation Office of Inspector General and the Ohio Inspector General’s Office. The U.S. Attorney’s Office for the Southern District of Ohio represented the federal government in the matter.

Officials emphasized that the settlements resolve allegations only, and there has been no determination of liability.