Summary

As a result of our investigation, the Federal Highway Administration (FHWA) North Carolina Division, Raleigh, North Carolina recovered $1.3 million in ineligible Federal–aid expenditures from the North Carolina Department of Transportation (NCDOT), Right of Way Division. This recovery, which was reported by FHWA on March 11, 2009, followed our investigation of two NCDOT employees, Wilson Grant and Leonard Scarborough. Our investigation revealed that they violated NCDOT and FHWA policies and procedures concerning the approval of cost–to–cure claims; the solicitation of bid appraisals and awarding of contracts and the authorization of payments for non–compensable work and items concerning two projects to improve Lake Wheeler Road in Wake County, NC. This investigation resulted in Mr. Grants’ resignation and Mr. Scarborough’s demotion and reassignment to a non–supervisory role. OIG agents pursued the administrative recovery after this matter and were declined by the US Attorney’s office for civil and criminal prosecution. Our investigation was worked jointly with the Federal Bureau of Investigation; with significant assistance from the FHWA North Carolina Division.