Ash Grove Cement subcontractor accused of Fraud


Updated Sun, 13 Jun 2010 00:00:00 GMT

The Ash Grove Cement Co. of Overland Park, Kansas, which built a $484 million cement plant in Foreman, accused one of its subcontractors of defrauding it of more than $350,000.

Ash Grove has sued its subcontractor MMR Constructors Inc. of Baton Rouge, La., for allegedly submitting invoices for supplies it never received for the 4,650 standard tons per day cement production plant, according to the lawsuit filed in U.S. District Court in Texarkana. Ash Grove also accused Contractor Sales & Rentals of Texarkana LLC of assisting in the alleged fraud.

Ash Grove said in the lawsuit that it "obtained documentation evidencing that MMR and CSR had jointly engaged in a fraudulent scheme to fabricate invoices for materials that MMR acquired from CSR for use on the Project."

Ash Grove is seeking the extra $352,779 it paid for MMR's alleged inflated invoices. MMR has been paid a total of $57.3 million for its work on the project, according to the lawsuit.

MMR couldn't be reached for comment, and David Hughes, the owner of CSR, declined to comment, according to an employee.

The cement plant opened in March and features a 436-foot-tall kiln pre-heater tower, making it one of the tallest structures in Arkansas. The plant replaces one that was built in 1958.