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Ohio Construction Company Owners Sentenced for Pavement-Striping Fraud Scheme

On April 6, 2023, the U.S. District Court for the Northern District of Ohio sentenced Gerald and Adam Reichert for conspiracy to commit major fraud against the United States, highway project fraud, and wire fraud. Gerald Reichert was sentenced to 16 months of incarceration, 12 months of supervised release, and a $90,000 fine. Adam Reichert was sentenced to 8 months of incarceration, 12 months of supervised release, and a $70,000 fine. Additionally, the Reicherts were ordered to jointly pay $579,014 in restitution. They pleaded guilty to the scheme in October 2022.
Gerald and Adam Reichert were owners and operators of Oglesby Construction, Inc., a pavement marking contractor based in Norwalk, Ohio, that performed paint-striping services for Ohio, Kentucky, and West Virginia. The Reicherts contracted with State authorities to perform paint-striping of roads using a certain amount of paint and glass beads, but then under-applied those materials and falsely informed the States that they had complied with contractual requirements. They misled States by manipulating daily Excel spreadsheet reports and by attaching physical manipulation devices to application trucks, including applicators and scales.
DOT-OIG conducted this investigation with the FBI.