Investigations

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North Carolina Highway Contractor Agrees to $2.25 Million Civil Settlement for False Testing on Several Federally Funded Highway Projects in the Greensboro Area

On October 3, APAC Atlantic, Inc. (APAC), Greensboro, NC, agreed to pay $2.25 million settling a civil action in the Middle District of North Carolina for false asphalt testing. Our investigation revealed that six asphalt plant technicians employed by APAC had falsified tests on several federally funded highway construction projects in the Greensboro area and as a result sub-standard asphalt may have been used in several projects. APAC management conducted an internal investigation and fired the six employees. In addition to the monetary settlement, an agreement was reached with APAC so that certain highway projects carry an extended materials warranty. If stripping or deterioration of the highway occurs, the warranty ensures that APAC would replace the asphalt. APAC also agreed to an extensive quality control and compliance program requiring APAC, at their expense, to employ an independent monitor for quality control testing. This investigation was conducted with extensive assistance from FHWA and NCDOT.