Westerville-based Kokosing Materials, Inc. will pay $17.5 million to resolve allegations that it submitted false or fraudulent asphalt test results from 2012 through 2024, the federal office said Wednesday.
Ohio’s Construction and Materials Specifications require that companies performing asphalt projects must conduct mix design testing of their asphalt mixtures, known as Job Mix Formulas, the attorney’s office said.
Companies are required to submit those test results to the state before beginning asphalt work on federally funded projects.
“The settlements resolve allegations that, rather than performing required mix design tests, the companies repeatedly submitted formulas with data copied from prior mix tests,” the U.S. attorney’s office states.
The settlements also resolve allegations that the companies submitted false quality control test results, according to federal investigators.
“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 citizens to file lawsuits on behalf of the U.S. government to report allegations of fraud.
Kokosing released a statement Friday saying: “Kokosing Materials, Inc. (KMI), a company that produces and sells asphalt, has reached a no-fault settlement agreement with the U.S. government. The settlement resolves a civil matter alleging past issues in KMI’s asphalt mix design laboratories, relating to paperwork and testing procedures. KMI fully cooperated during the inquiry.
“KMI decided to resolve this matter to avoid the time and expense of potential litigation, so that it can continue to focus on making compliant, quality asphalt products. The agreement includes no finding of liability. KMI stands by the quality of its products.”
The company added: “KMI continues to invest in its compliance and audit programs to maintain its legacy of delivering quality products that meet or exceed the expectations of its customers and partners.”
A message seeking comment was left with a Barrett representative at the company’s Hamilton office.
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