Contractor Sentenced for Using Substandard Construction Materials on Pennsylvania Highway Projects
September 10, 2007
On September 10, 2007, George Smith, Jr., owner and operator of Statewide Hi–Way Safety Incorporated (Statewide), was sentenced in U.S. District Court, Philadelphia, Pennsylvania, to 27 months incarceration and 36 months supervised release and ordered to pay $650,000 in restitution for using substandard construction materials on federally–funded highway projects in Pennsylvania. In April 2007, Mr. Smith pled guilty to one count of mail fraud and admitted that between September 2002 and April 2005, Statewide used substandard steel in guard rail components and provided false certifications to prevent State authorities from detecting the illicit activity. Mr. Smith and Statewide have been referred to FHWA for suspension and debarment consideration.