Anchorage Company Manager Pleads Guilty and is Sentenced for Double-Billing Scheme on Alaska Highway Project
On October 17, 2012, Darrell Underwood, a highway construction project manager for Quality Asphalt Paving (QAP), pleaded guilty and was sentenced in U.S. District Court, Anchorage, Alaska, for making false statements in connection with a federally funded road construction project. He was sentenced to serve 3 years of probation and ordered to pay a $2,000 fine and $100 special assessment. In May 2012, the Federal Highway Administration (FHWA) suspended Underwood from working on Federal-aid contracts.
This investigation was initiated when OIG was advised that employees of QAP were allegedly conducting deceptive business practices on the Chief Eddie Hoffman Highway Rehabilitation, Airport to High School project. QAP was contracted to perform highway rehabilitation work by the Alaska State Department of Transportation in July 2006. The investigation disclosed that from approximately July 12 to July 16, 2007, Mr. Underwood directed QAP employees to create duplicate weight tickets for single truckloads of gravel for which QAP could then bill the State of Alaska. This fraud resulted in double billing the State for just under $70,000. The scheme was reported to FHWA by a QAP driver who was directed to falsify weight tickets.
This case was investigated by OIG, with assistance from FHWA, Alaska State Department of Transportation, and Alaska State Troopers.