Asphalt Company Fined $6.5 Million by DOJ for Bid Rigging

Asphalt Specialists LLC has been slapped with a $6.5 million criminal fine for its role in orchestrating bid rigging schemes across Michigan’s asphalt industry. The hefty fine follows the company’s guilty plea earlier this year, marking a significant enforcement action in a broader crackdown on anticompetitive practices within the sector.

From March 2013 to November 2018, Asphalt Specialists LLC was involved in colluding with Al’s Asphalt Paving Company Inc., ensuring that bids submitted by their competitors were artificially low. This scheme was designed to create a false impression of competitive bidding while secretly determining the winners of contracts.

The company's illicit activities did not stop there. From July 2017 through May 2021, Asphalt Specialists LLC also conspired with F. Allied Construction Company Inc., continuing their practice of coordinating bid prices to undermine true market competition.

Deputy Assistant Attorney General Manish Kumar from the Justice Department’s Antitrust Division emphasized the severity of the offense. “When companies choose to cheat rather than compete, they can expect to pay substantial, punitive criminal fines,” Kumar said. “The Antitrust Division and its law enforcement partners are committed to ensuring that those who violate antitrust laws face serious consequences.”

The fine imposed on Asphalt Specialists LLC serves as a stern warning to other firms engaged in similar misconduct. Acting Special Agent in Charge Anthony Licari of the Department of Transportation’s Office of Inspector General (DOT-OIG) stated, “The sentence imposed today should serve as a significant deterrent for anyone who chooses corporate greed over open and fair competition for transportation projects.”

The investigation into Asphalt Specialists LLC is part of a larger federal antitrust probe targeting bid rigging and other anticompetitive practices in the asphalt paving industry. Al’s Asphalt had already pleaded guilty and was fined $795,661.81 on July 31. F. Allied Construction Company Inc., which was also involved, is awaiting sentencing. Additionally, six individuals have been charged in connection with the investigation.

Kenneth Cleevely, Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General (USPS OIG), noted the significance of the sentencing. “Asphalt Specialist LLC’s sentence reflects the seriousness of conduct that undermines the competitive process,” he said.

The case, investigated by the DOT-OIG and USPS OIG, underscores a robust enforcement effort to uphold fair competition in critical infrastructure sectors, signaling a resolute stance against anticompetitive practices.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.