Michigan Company Fined $6.5 Million for Bid Rigging in the Asphalt Industry

Asphalt Specialists LLC, a company based in Pontiac, Michigan, has been ordered to pay $6.5 million in criminal fines for its involvement in bid-rigging schemes related to asphalt paving contracts in the state of Michigan. The sentence comes after the company pleaded guilty on January 30 to its involvement in two separate schemes.

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. This company also carried out the same conspiracy as F. Allied Construction Company Inc. (Allied) and its employees from July 2017 to May 2021. In both cases, the conspirators coordinated the bid prices to ensure that the losing companies would submit deliberately non-competitive bids. This practice deceived customers into believing that there was real competition for contracts when, in fact, the results were predetermined by conspirators.

“When companies choose to cheat rather than compete, they can expect to pay large, criminal penalties,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. He emphasized the commitment of the Antitrust Division, in cooperation with law enforcement, to ensure that those who violate antitrust laws do not benefit from their crimes, especially in the most important sectors of the country’s infrastructure.

Acting Special Agent in Charge Anthony Licari of the Transportation Department of the Office of the Inspector General (DOT-OIG), Midwestern Region, noted that this sentence should serve as a deterrent to corporate greed and emphasized the continued commitment to respond to those who clearly undermine fair competition in transportation projects.

Acting Special Agent in Charge Kenneth Cleevely of the US Postal Service Office of the Inspector General (USPS OIG) added that the sentencing is a significant victory to protect the competitive process and ensure that justice is served.

Asphalt Specialists LLC is one of three companies involved in a federal antitrust investigation into bid rigging and other anti-competitive practices in the asphalt paving industry. Al’s Asphalt previously pleaded guilty and was ordered to pay $795,661.81 in fines on July 31. Allied also pleaded guilty and is awaiting sentencing. In addition, six people have been charged as part of the ongoing investigation.

The investigation was conducted by DOT-OIG and USPS OIG, with prosecution led by the Chicago Office of the Antitrust Division.