Materials & Supplies

Contractor to Pay $1.3M for Alleged Asphalt Test Fraud

Anderson Brothers was accused of faking asphalt tests in Minnesota.

Updated on

May 7, 2025

asphalt testing — Asphalt testing in progress at a laboratory. (Photo courtesy)

A Minnesota-based contractor has agreed to pay nearly $1.3 million to settle asphalt test falsification claims across numerous publicly funded infrastructure projects in the state.

Anderson Brothers Construction Co., based in Brainerd, faced accusations from both the U.S. and Minnesota governments of routinely submitting false test data between 2017 and 2022.

The allegations, filed under the False Claims Act, claimed the firm manipulated results to make paving materials seem higher quality, securing incentives and avoiding penalties.

The case was sparked by a whistleblower lawsuit filed in 2022 by former employee and bituminous-mix technician Kacie Dixon, who alleged that the company engaged in “systemic and consistent false statements” during her tenure from May 2019 to August 2022.

According to court filings, her internal complaints about the irregularities were ignored, despite her raising concerns with human resources and even a company owner.

Dixon claimed she personally observed the manipulation of asphalt test results and other compliance violations.

The lawsuit claimed that substandard and defective materials were used in 25 public projects, including roadways, airports, and schools, across several Minnesota counties.

“Minnesotans expect their tax dollars to go to things like roads, bridges, schools and public safety, not into the pockets of corrupt contractors,” said Minnesota Attorney General Keith Ellison. “My thanks go out to whistleblowers like Kacie Dixon who help us fight fraud.”

Under the terms of the agreement, the federal government will receive $660,761, while Minnesota will collect $634,849. Dixon is set to receive over $114,000 from the state’s portion, with additional compensation from the federal side.

The company, founded in 1940, did not admit liability as part of the settlement. CEO Terry McFarlin said in a statement, “We’re pleased to have resolved the government’s concerns about our past testing protocols through a no-fault agreement.”

He added that the settlement “lets us avoid the time, distraction and expense of lengthy government litigation and instead focus on taking care of our customers.”

As part of the resolution, Anderson Brothers will be required to implement a quality control programme, monitored by the Minnesota Department of Transportation during the upcoming construction season. The company stated the affected contracts represented only “about one-half of one percent” of its total project value during that period.

“When fraudulent conduct like this undermines the integrity of highway paving, putting the safety of the travelling public at risk, it’s our job … to put an end to it,” said Anthony Licardi of the U.S. Department of Transportation’s Office of the Inspector General.

The settlement brings to a close a years-long case, while ensuring stricter oversight of future public works involving the company.