Asphalt Specialists LLC, a company based in Pontiac, Michigan, has been sentenced to pay a $6.5 million criminal fine for its involvement in bid-rigging conspiracies related to asphalt paving services contracts in the state of Michigan. The sentencing comes after the company pleaded guilty on January 30 to charges stemming from its participation in two separate conspiracies.
According to court documents, Asphalt Specialists LLC conspired with Al’s Asphalt Paving Company Inc. (Al’s Asphalt) and its employees between March 2013 and November 2018. The company also engaged in a similar conspiracy with F. Allied Construction Company Inc. (Allied) and its employees from July 2017 through May 2021. In both instances, the conspirators coordinated bid prices to ensure that the losing companies would submit intentionally non-competitive bids. This practice deceived customers into believing there was genuine competition for the contracts when, in reality, the outcomes had been pre-determined by the conspirators.
“When companies choose to cheat rather than compete, they can expect to pay substantial, punitive criminal fines,” stated Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. He emphasized the Antitrust Division’s commitment, alongside law enforcement partners, to ensuring that those who violate antitrust laws do not benefit from their crimes, particularly in sectors critical to the country’s infrastructure.
Acting Special Agent in Charge Anthony Licari of the Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region, noted that the sentence should act as a deterrent to corporate greed and emphasized the ongoing commitment to holding accountable those who undermine open and fair competition in transportation projects.
Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service Office of the Inspector General (USPS OIG) added that the sentencing is a significant victory for protecting the competitive process and ensuring justice is served.
Asphalt Specialists LLC is one of three companies implicated in the federal antitrust investigation into bid-rigging and other anticompetitive practices within the asphalt paving industry. Al’s Asphalt previously pleaded guilty and was sentenced to pay a fine of $795,661.81 on July 31. Allied has also pleaded guilty and is awaiting sentencing. Additionally, six individuals have been charged as part of the ongoing investigation.
The investigation was conducted by the DOT-OIG and USPS OIG, with prosecution led by the Antitrust Division’s Chicago Office.
This article, “Michigan Company Fined $6.5 Million for Bid Rigging in Asphalt Industry” was first published on Small Business Trends