Indiana Contractor Agrees to Pay More Than $8.2 Million to Settle Federal and State Asphalt Fraud Claims
December 10, 2007
On December 10, 2007, in U.S. District Court for the Western District of Kentucky, Louisville, Kentucky, Indiana contractor Gohmann Asphalt and Construction, Inc. (Gohmann) agreed to pay more than $8.2 million to settle Federal and State claims alleging that Gohmann fraudulently swapped samples of asphalt between 1997 and 2006 to inflate the amount paid on road projects by the Federal Highway Administration (FHWA), Commonwealth of Kentucky, and State of Indiana. This joint investigation revealed that Gohmann’s employees fraudulently swapped “good” cores for “bad” cores (i.e., cores with failing density). The investigation was conducted with FHWA and the U.S. Attorney’s Office for the Western District of Kentucky, Louisville, Kentucky.