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Michigan Highway Contractor Agrees to Pay Nearly $600,000 In Civil Settlement Involving Asphalt Pavement

On December 7, 2007, the parent corporation of Thompson–McCully, Inc. (TMI)–a now–defunct paving contractor located in Clarkston, Michigan–which was in the midst of being restructured by the parent corporation into two subsidiaries during our investigation, paid $595,557 to the U.S. Government by and through one of the new subsidiaries to settle a civil false claims case. On November 12, 2007, TMI signed a civil settlement agreement with the U.S. Attorney’s Office for the Eastern District of Michigan, Detroit, Michigan, and with the Federal Highway Administration. TMI agreed to pay the government to settle single damages pertaining to incentive payments on federally funded highway construction projects. Between 1998 and 2000, TMI allegedly falsified density test results for asphalt pavement on at least three federally funded contracts cumulatively valued at more than $30 million. In the settlement, TMI’s parent corporation also agreed to repave a road TMI previously worked on that has shown signs of unnatural wear. The repaving will more likely cost in excess of $500,000.