9/28/2009
HEADLINES
$100k Fine Concludes “Big Dig” Probe

Powers Fasteners agreed to plead guilty to one count of making a false statement and pay a $100,000 fine in connection with construction of Boston’s “Big Dig” tunnel system.

The latest charge “alleges that the general contractor … utilized a Powers Fasteners epoxy product, Power Fast Epoxy, to secure the drop ceiling to the roof of the tunnel using anchor bolts epoxied into drilled holes,” according to the Attorney General’s office.

“Several of the anchor bolts ultimately failed, and on July 10, 2006, several ceiling panels collapsed on a vehicle, killing a motorist.”

Earlier this year Powers Fasteners agreed to pay $16 million in exchange for one count of manslaughter being dropped against the company.

Brewster, NY-based Powers Fasteners was charged in 2007 with manslaughter in the death of Milena Del Valle, who was crushed when the tunnel ceiling panels collapsed. The company reached a $6 million settlement with the woman’s family.

In addition to the financial settlement, Powers Fasteners reportedly agreed to recall its “fast-set” epoxy used in the tunnel that collapsed.

Company president Jeffrey Powers said the settlement was in the best interest of his company.

“After years of exhaustive investigations by government officials in Massachusetts, we agreed today to end the final investigation by paying $100,000 and accepting a technical charge involving a ‘false statement by omission’ in a Company marketing brochure,” stated Jeffrey Powers.

“In 1999, unbeknownst to Powers, a small section of a company brochure – a 1997 printing –was used by Modern Continental in a preliminary submittal to Big Dig Tunnel officials.” That brochure did not distinguish between sustained loads for fast setting and standard setting epoxy.

“However, one month later and before the Big Dig Tunnel ceiling construction even began, Mass Highway, the owner of the tunnel, was advised of the differences between fast setting epoxy and standard setting epoxy after a Powers engineer disclosed that Powers Fast Set could not pass the AC-58 – a creep test,” Jeffrey Powers explained.

Jeffrey Powers added that the conclusion of the investigation “confirms that no individual Powers employee, past or present, engaged in any knowing misconduct.” ©2009 GlobalFastenerNews.com

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