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Anchorage Company Manager Charged in Connection with an Alaska Highway Project Double-Billing Scheme

On September 17, 2012, an Information was filed in U.S. District Court, Anchorage, Alaska, charging Darrell Underwood, a highway construction project manager for Quality Asphalt Paving (QAP), with false statements, in connection with highway rehabilitation work QAP performed on the federally funded Chief Eddie Hoffman Highway project.  QAP was awarded the contract in July 2007.

This investigation was initiated when OIG was advised that employees of QAP were allegedly conducting deceptive business practices on the Chief Eddie Hoffman Highway project between the airport in Bethel, Alaska and the highway's intersection with Ridgecrest Drive.  The project was estimated to cost $12,260,852, with $11,089,218 to be paid by Federal-aid funds.  The investigation disclosed that beginning on or about July 12,2007, and continuing until at least on or about July 16, 2007, Underwood directed QAP employees he supervised to create duplicate weight tickets for single truckloads of gravel in order to collect additional weight tickets for which QAP could bill the State of Alaska. The result of this fraud was that QAP double billed the State for multiple shipments of gravel in the total dollar amount of just under $70,000. The scheme was reported to the Federal Highway Administration (FHWA) by a QAP driver who was directed by Underwood to falsify weight tickets on the job.  In May 2012, FHWA suspended Mr. Underwood from working on Federal-aid contracts.

This case was investigated by OIG, with assistance from FHWA, Alaska State Department of Transportation, and Alaska State Troopers.

Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.