Plattsburgh Contractor Pays $350,000 to Resolve Claims Related to Bridge-Sealing Projects

ALBANY, NEW YORK – Dandrow’s Painting, Inc. (Dandrow’s) has agreed to pay $350,000 to resolve allegations that it failed to purchase and apply sufficient quantities of a penetrating sealing agent to meet its obligations under federally funded contracts.  The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General (NYS-IG) Catherine Leahy Scott; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.

NYSDOT has contracts for the washing and sealing of concrete bridge decks that are funded, in part, with federal funds.  These contracts require the application of a penetrating sealing agent at specified rates to ensure the protection and integrity of the bridge decks over their useful lives.  If a sufficient quantity of the sealant is not applied, the bridge deck may not be protected against weather-related deterioration.  During the course of its investigation, USDOT-OIG and NYS-IG discovered that Dandrow’s had not purchased sufficient quantities of the sealing agent to satisfy its contractual obligations under its contracts with NYSDOT.

United States Attorney Jaquith said: “Safeguarding public dollars is one of this office’s top priorities.  When companies enter into federally funded contracts, they must ensure that they are complying with their contractual obligations.  Today’s settlement reaffirms our commitment to ensuring that taxpayers are receiving the benefit of their bargain.  I would like to thank the agents from USDOT-OIG, NYS-IG and NYSDOT for their diligent efforts to bring this matter to a successful conclusion.”

The investigation and settlement were the result of a coordinated effort among the U.S Attorney’s Office for the Northern District of New York, USDOT-OIG, NYS-IG and NYSDOT.  The United States was represented by Assistant United States Attorney John Hoggan.