TDOT Contractors Indicted for Destroying Records During Federal Probe

A federal grand jury has indicted the owners of a Knoxville company that has received $37 million in state contracts since 2002, reports The Tennessean. It’s the second federal case this year that alleges corrupt activity between Tennessee Department of Transportation employees and contractors.
The indictment alleges that Kevin Eugene Peel, vice president of Knoxville-based Tennessee Guardrail, and Allen Roy DeFoe, founder of the company, destroyed records requested by a federal grand jury in Nashville in 2006. The four-count indictment charges the two with conspiracy to obstruct; corruptly endeavoring to obstruct and impede the due administration of justice; destruction of records with intent to obstruct an official proceeding; and destruction of records with intent to obstruct a federal investigation.
A federal task force was created in 2004 to investigate whether contractors were violating antitrust laws in bidding on contracts let by TDOT…. By 2006, the task force was investigating the circumstances surrounding the awarding of contracts to Tennessee Guardrail and the activities of an unnamed TDOT employee who oversaw the company’s contracts, according to the indictment.
In May 2006 a subpoena was sent to Tennessee Guardrail requesting financial records including records of the payment for meals; lodging; activities such as hunting, fishing and golfing; tickets to sporting events, concerts and other entertainment; gifts; and “anything of value obtained for or transferred for the direct or indirect benefit of any employee or former employee of” TDOT or other government agencies. The subpoena also requested records “used to work up any bid that was submitted to” TDOT.
The indictment alleges that, after receiving the subpoena, Peel and DeFoe took numerous boxes of documents to a commercial document-shredding business and had them destroyed.
Tennessee Guardrail has received 24 TDOT contracts totaling $37 million since 2002, according to the department, and has one active $2.3 million contract to repair guardrails in the Knoxville area.

Leave a Reply