Guard Rail Contractor Pleads Guilty to Fraud Charges Related to Pennsylvania
April 04, 2007
On April 4, George Smith, Jr., owner and operator of Statewide Hi-Way Safety Incorporated, Hammonton, New Jersey, pleaded guilty in U.S. District Court in Philadelphia, Pennsylvania, to a mail fraud charge in connection with a scheme to defraud FHWA and the Pennsylvania Department of Transportation. Smith admitted that between 2002 and 2005, Statewide used substandard construction materials in guard rail components on federally-funded highway projects in Philadelphia and its suburbs. The use of construction materials other than those specified in the contract resulted in a loss to FHWA of $683,303. Smith's sentencing is set for July. OIG investigated this case with FHWA and the Pennsylvania Office of Inspector General.