Ohio Business Could Cause Headache for Alaska Senate Candidate
Photo Credit: US News
An Ohio business accused of overcharging the federal government for contract work could pose a headache for Alaska Republican Senate candidate Dan Sullivan.
Sullivan, who is in the midst of a primary fight for the opportunity to challenge Sen. Mark Begich, D-Alaska, this fall, has family ties to RPM International, a Medina, Ohio, paint company that paid a $65 million settlement to the federal government last year to resolve charges it didn’t provide the government with price discounts it gave to other customers.
According to the Justice Department, RPM, and its subsidiary, Tremco Inc., failed to provide “current, accurate and complete information” about “changes in discounts … and to pass those discounts on to government customers” between January 2002 and March 2011.
“In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems,” the Justice Department charged.
RPM was founded by Sullivan’s grandfather and is now operated by his brother.
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Photo Credit: Facebook / Dan Sullivan
By B. Christopher Agee.
RPM International, a corporation that owns paint supplier Tremco, recently reached a settlement with the federal government that resulted in the Ohio-based company parting with $65 million.
Among the charges levied against RPM and its subsidiary company is the allegation that it charged the government one price for products and services while offering significant discounts for other clients. The corporation was also accused of portraying “generic products as a superior line of the same product” and using “defective adhesive formula,” the Department of Justice explained.
The government entered into a contract with the company to complete jobs including roofing work on hospitals and prisons.
Though he is seeking a U.S. Senate seat thousands of miles away in Alaska, Republican Dan Sullivan is now facing scrutiny as a result of RPM’s actions. Not only is his brother now in charge of the company his grandfather started; RPM is also a heavy donor to Sullivan’s campaign.
According to reports published earlier this year, RPM started a political action committee to support the candidate; and several high-ranking officials within the corporation have donated significantly to his reserves.
Read more from this story HERE.
