Investigations

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Missouri Asphalt Paving Contractor Pays $200,000 In Civil Settlement Of A False Claims Case

On July 17, Pace Construction Company (Pace), a St. Louis, MO asphalt paving firm, paid $200,000 in accordance with a civil settlement reached with the U.S. Attorney's Office in St. Louis and the Federal Highway Administration (FHWA). The settlement resolves allegations that Pace, which held road paving contracts with the Missouri Department of Transportation (MO-DOT), submitted false claims for payment associated with the quality of asphalt materials used. Investigation found that, between August 28 and September 24, 2004, Pace employees submitted incorrect core samples to MO-DOT for testing, resulting in inflated contract payments. There is no evidence that Pace management was aware of the fraudulent claims, but the employees involved have since been terminated from the firm, and a company policy that provided employee bonuses based on the outcome of asphalt quality tests has been discontinued. MO-DOT and FHWA assisted in this investigation.