Asphalt contractor pays $8 million to avoid federal lawsuit

| Thursday, December 13, 2007

A highway contractor in Clarksville, IN, has agreed to pay more than $8 million to settle federal allegations that it cheated on asphalt samples it provided for testing for road projects in Indiana and Kentucky.

Federal investigators claimed that Gohmann Asphalt and Construction employees showed Indiana highway officials good asphalt samples, then used substandard asphalt for actual projects.

The Indianapolis Star reported that the settlement covers $99 million worth of asphalt work done by the company during a 10-year period ending in 2006.

Gohmann agreed to pay $6.7 million to the federal government, which provided about 80 percent of the funds for the highway work; $1.1 million to Kentucky; and $362,165 to Indiana. Of that, whistle-blower Paul Roederer, a former asphalt crew supervisor for Gohmann, will receive $1.1 million for alerting federal authorities to the allegations in 2003.

Comments