Dow Chemical Co. to Pay $456,000 for Former Subsidiary’s Alleged Violations of the Federal False Claims Act and Minnesota False Claims Act for Falsifying Test Results for Road Construction Materials

MINNEAPOLIS – United States Attorney Andrew M. Luger today announced that DOW CHEMICAL CO. has agreed to pay $456,665.42 for alleged violations by its former subsidiary, POLY CARB, INC., of the federal False Claims Act and the Minnesota False Claims Act, by falsifying testing results in connection with several road construction projects administered by the Minnesota Department of Transportation, many of which were federally funded.

According to the allegations, between 2012 and 2015, POLY CARB, INC. provided enamel paint products for several road construction projects, many of which were federally funded, throughout the State of Minnesota. All such projects are required, by law and contract, to be performed in accordance with detailed terms and specifications using only approved materials subject to a rigorous testing and certification process. The government contends POLY CARB, INC. failed to follow contract specifications and applicable rules by fabricating test results and forging signatures and documentation for its enamel products, thus making materially false claims and statements in connection with its purported testing. The proceeds of the settlement will be divided by the federal and state governments according to the original funding of the projects.

“Submitting forged and fabricated documents to the government is never acceptable,” said U.S. Attorney Andrew M. Luger. “In coordination with our State partners, we will continue using the False Claims Act to address fraudulent conduct by government contractors, subcontractors, and suppliers.”

“Resolving this civil case advances our efforts to keep federally funded transportation projects free from fraud, waste, and abuse,” said Andrea M. Kropf, Special Agent-in-Charge, Midwestern Region, U.S. Department of Transportation Office of Inspector General. “When improper activities like this come to our attention we will work with our federal, state, and prosecutorial partners to investigate and hold those involved accountable.”

This case was jointly investigated by the Office of Inspector General of the U.S. Department of Transportation and the Minnesota Department of Transportation, and handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota, as well as the Minnesota Attorney General’s Office.

The claims resolved by the settlement are allegations only; there has been no determination of liability.