US construction company fined $6.5 million for bid rigging

Image: United States Department of JusticeVectorization: Ali Zifan, Public domain, via Wikimedia Commons

Pontiac-based Asphalt Specialists LLC pleaded guilty for its conduct on 30 January this year.

The company participated in a conspiracy with Al’s Asphalt Paving Company Inc. (Al’s Asphalt) and its employees from March 2013 until November 2018, according to court documents and proceedings.

The company also participated in a separate conspiracy with F. Allied Construction Company Inc. (Allied) and its employees from July 2017 until May 2021.

The US Department of Justice (DoJ) said that each conspiracy operated in much the same way: the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids.

“These bids gave customers the false impression of competition when, in fact, the co-conspirators had already decided among themselves who would win the contracts,” a statement from the DoJ asserted.

Asphalt Specialists LLC is one of three companies that have been charged as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry. Al’s Asphalt pleaded guilty and was sentenced to pay a fine of $795,661.81 on 31 July. Allied also pleaded guilty and is awaiting sentencing. Six individuals also have been charged as part of the investigation.

Acting special agent in charge Anthony Licari Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region said, “The sentence imposed today should serve as a significant deterrent for anyone who chooses corporate greed over open and fair competition for transportation projects. Our commitment to working with our law enforcement partners and the Justice Department’s Antitrust Division is unwavering as we continue to pursue and uncover corrupt conduct and hold companies that intentionally engage in wrongdoing accountable.”

A spokesperson for Asphalt Specialists said, “ASI takes full responsibility for the unacceptable conduct in question. These past activities, which ended more than three years ago, are inconsistent with our core values and policies -- which we have since strengthened through a new code of conduct and more rigorous compliance protocols. We are pleased to put this matter behind us and move forward with a clear focus on serving our customers in accordance with all applicable laws and regulations.”