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Justice News

Department of Justice
U.S. Attorney’s Office
District of South Carolina

FOR IMMEDIATE RELEASE
Thursday, March 29, 2018

Dow Chemical Company Settles False Claims Act Allegations for $479,000

Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the Dow Chemical Company has agreed to pay the United States $479,000 to settle allegations that Poly-Carb, Inc. – a former Dow subsidiary – violated the False Claims Act by submitting fraudulent materials certifications related to a federally-funded highway resurfacing project. 

In 2012, Poly-Carb, Inc. (then a subsidiary of Dow) was awarded a subcontract on a federally-funded project to apply a skid-resistant adhesive to several highways throughout South Carolina.  To ensure the materials conformed to contract specifications, the contract required Poly-Carb to collect samples, have them tested by an independent third party, and send certifications of the results to the South Carolina Department of Transportation (SCDOT).  Between 2012 and 2013, Poly-Carb submitted certifications to SCDOT, claiming another company had performed this third-party testing.  The settlement agreement resolves allegations made by the United States Department of Transportation (USDOT) and the United States Department of Justice that Poly-Carb falsified these certifications to make them appear to be from a third-party, in violation of the False Claims Act.

“This is another example of how rigorous enforcement of the False Claims Act helps protect the public’s interest and taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Beth Drake.  “It also reflects our ongoing commitment to protect our state and federal transportation agencies and the vital infrastructure programs they provide.”

The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs. 

“It is important to ensure that taxpayers get what they pay for so that the quality of products used in federally funded transportation projects is not compromised,” said Marlies T. Gonzalez, Regional Special Agent-in-Charge at the USDOT’s Office of Inspector General. “We will continue working with the USDOT, Federal Highway Administration, and our partners at the U.S. Department of Justice to promote the detection and prosecution of fraud schemes which erode public confidence in the integrity of our nation’s transportation system.”

This case was handled by Assistant United States Attorneys Brook Andrews and James Leventis.  The case was investigated by Special Agent Sara Oliver of the USDOT Office of Inspector General.

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Topic(s): 
False Claims Act
Component(s): 
Contact: 
Lance Crick (864) 282-2105
Updated March 29, 2018