$85,000 Settlement with Aero-Mod
HARRISBURG – Attorney General Tom Corbett today announced an $85,000 settlement with a wastewater treatment equipment supplier for allegedly breaking the Pennsylvania Steel Products Procurement Act, which requires that steel used in all public works projects must be manufactured in the United States.
Corbett said that the lawsuit was filed against Aero-Mod, Inc., a Delaware-based corporation that designs, manufactures and distributes custom-designed wastewater treatment facilities and equipment. Their chief place of business is located in Manhattan, Kan.
“The Pennsylvania Steel Products Procurement Act was designed to both stimulate the economy and promote the general wellbeing of the Commonwealth,” Corbett said. “When companies break this law, they’re not only taking money out of our local economy, they’re also creating an unfair advantage by lowering their prices through the use of cheaper materials.
According to court documents, Aero-Mod supplied equipment for a new pumping station at the Newberry Township Municipal Authority, which is located in York County. Aero-Mod allegedly violated the Pennsylvania Steel Products Procurement Act by failing to certify the use of United States manufactured steel in the project.
Corbett said that Aero-Mod won the bid to supply equipment for the project in February 2006. In December 2006, the Newberry Township Municipal Authority’s solicitor made a request for the certifications required by the Steel Products Procurement Act. A second request was made by the Pennsylvania Office of Attorney General in April 2007.
Corbett said that $85,000 settlement includes $50,000 in restitution to the Newberry Township Municipal Authority, along with $29,750 to be divided among 21 other Pennsylvania public entities that had contracts with Aero-Mod dating back to 1991, which may have also been completed using foreign steel.
The other public entities are located in Bedford, Cambria, Elk, Erie, Fulton, Huntington, Juniata, Lebanon, McKean, Mifflin, Montgomery, Snyder, Union and York counties.
The agreement was filed in Commonwealth Court by Chief Deputy Attorney General Jim Donahue of the Attorney General's Anti-Trust Section.
Corbett said that the lawsuit was filed against Aero-Mod, Inc., a Delaware-based corporation that designs, manufactures and distributes custom-designed wastewater treatment facilities and equipment. Their chief place of business is located in Manhattan, Kan.
“The Pennsylvania Steel Products Procurement Act was designed to both stimulate the economy and promote the general wellbeing of the Commonwealth,” Corbett said. “When companies break this law, they’re not only taking money out of our local economy, they’re also creating an unfair advantage by lowering their prices through the use of cheaper materials.
According to court documents, Aero-Mod supplied equipment for a new pumping station at the Newberry Township Municipal Authority, which is located in York County. Aero-Mod allegedly violated the Pennsylvania Steel Products Procurement Act by failing to certify the use of United States manufactured steel in the project.
Corbett said that Aero-Mod won the bid to supply equipment for the project in February 2006. In December 2006, the Newberry Township Municipal Authority’s solicitor made a request for the certifications required by the Steel Products Procurement Act. A second request was made by the Pennsylvania Office of Attorney General in April 2007.
Corbett said that $85,000 settlement includes $50,000 in restitution to the Newberry Township Municipal Authority, along with $29,750 to be divided among 21 other Pennsylvania public entities that had contracts with Aero-Mod dating back to 1991, which may have also been completed using foreign steel.
The other public entities are located in Bedford, Cambria, Elk, Erie, Fulton, Huntington, Juniata, Lebanon, McKean, Mifflin, Montgomery, Snyder, Union and York counties.
The agreement was filed in Commonwealth Court by Chief Deputy Attorney General Jim Donahue of the Attorney General's Anti-Trust Section.
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