Name: Robert Pines
Employed as: Other, non-employee, for N/A
Posted: 10 February 2006
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September 21, 1995
CSX To Pay $4.5 Million Under Settlements
TALLAHASSEE - CSX Transportation Inc. will pay Florida, 10 other states
and the federal government $4,573,300 to settle allegations that the
company overbilled for work on railroad crossing equipment, Attorney
General Bob Butterworth announced today.
Under an agreement between Butterworth and CSX, Florida will receive
$1,166,337, including $566,337 to cover refunds to the Department of
Transportation (DOT) and the state's investigative costs. A unique
provision of the agreement earmarks $600,000 to endow an eminent
scholars chair in engineering at the Florida A&M/Florida State
University College of Engineering.
Under the same agreement, the states of Alabama, Georgia, Illinois,
Indiana, Kentucky, Mississippi, North Carolina, South Carolina,
Tennessee and Virginia will share a total of $302,000. A separate
settlement agreement between CSX and the U.S. Department of Justice
earmarks $3,104,963 for the federal government.
An investigation begun in February 1993 by DOT and the attorney
general's office focused on allegations that CSX overbilled for labor
costs involved in manufacturing signal devices for railroad/highway
The work performed by CSX was done as part of Operation Lifesaver, a
railroad crossing safety project funded 90 percent by the federal
government and 10 percent by the individual states.
Butterworth said that bills submitted by CSX for work on signal devices
overstated the amount of actual labor time required to complete a
particular job. He added that the company, which did not admit to any
wrongdoing, cooperated fully in the state's investigation.
In April 1993, CSX refunded $598,379 to Florida DOT to cover what the
company described as billing errors disclosed by the company's
internal audit. At the same time, refunds totalling $1,536,757 were
sent to 17 other states which had done business with the company.
The earlier refunds covered work done from January 1, 1987 to December
31, 1992. The refunds called for under the agreement between CSX and
Butterworth cover signal projects dating back to January 1, 1983.
Florida's investigation was primarily conducted by Assistant Attorney
General Mark Kraus and Financial Investigator Bruce Robinson and DOT
Investigator Barry Wall.
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