9/18/2009
NEWS BRIEFS
Powers Fasteners’ $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 collapsed. The company, which manufactured the epoxy blamed for the collapse, 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, as well as notify customers that the epoxy failed certain tests and is not recommended for sustained loads.
Authorities claim Powers “failed to disclose (the difference between its Fast and Standard Set epoxies) in its published Design Manual in 1999, which was relied upon and submitted by the general contractor … for approval.”
Company president Jeffrey Powers told FIN 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.
Jeffrey Powers told FIN that 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 as part of their effort to seek permission to use epoxy to suspend the ceiling that ultimately collapsed. This brochure did not distinguish between fast setting and standard setting epoxy with respect to long term sustained loads.
“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.
“Ultimately, the submittal that was approved for the ceiling construction did include an engineering report, provided by Powers, which clearly disclosed that Fast Set Epoxy was approved for short term use only and that Standard Set Epoxy could be used for long term loads.”
He said this ICBO engineering report was widely distributed by Powers beginning in October 1999.
Jeffrey Powers added that the conclusion of the investigation “confirms that no individual Powers employee, past or present, engaged in any knowing misconduct.”
The case was investigated by the Department of Transportation Office of Inspector General and the Federal Bureau of Investigation. ©2009 GlobalFastenerNews.com
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