The former president of a Michigan-based asphalt paving company has been sentenced to prison and ordered to pay a substantial fine for his role in a multiyear bid rigging scheme that defrauded customers and undermined competitive contracting.
Daniel L. Israel, former president of Asphalt Specialists LLC (ASI) in Pontiac, was sentenced on May 22 to six months in prison and fined $500,000 after pleading guilty to conspiring with Al’s Asphalt Paving Company Inc. and other co-conspirators to rig bids on asphalt paving contracts across Michigan. Israel admitted to coordinating with employees from both companies to submit intentionally non-competitive bids designed to deceive clients and ensure predetermined outcomes.
According to the Department of Justice, the conspiracy ran from March 2013 through November 2018, during which the co-conspirators manipulated bid submissions to create the appearance of fair competition while actually agreeing in advance which company would win specific contracts.
“Economic crime — like bid rigging — is no less harmful than violent crime,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “Both inflict deep, lasting harm on our communities and disenfranchise those who believe in the American dream. As the defendant admitted, he conspired to eliminate competition to further enrich himself and his accomplices. The Antitrust Division and its law enforcement partners will continue to ensure that individuals who cheat and deprive the public of the benefits of competition are incarcerated.”
This sentencing is part of a broader federal antitrust investigation into collusive practices in the asphalt paving industry. To date, seven individuals and three companies have been charged, resulting in more than $8.2 million in criminal fines.
“This sentencing marks an important milestone in holding accountable those responsible for this flagrant bid rigging scheme,” said Special Agent in Charge Anthony Licari of the U.S. Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region. “We remain committed to working closely with our law enforcement and prosecutorial partners to investigate and prosecute individuals who undermine fair competition and violate federal antitrust laws.”
Tammy Hull, Inspector General of the U.S. Postal Service, emphasized the broader implications of bid rigging on government operations: “The Postal Service maintains thousands of competitively bid contracts with private vendors to support its massive operation. Criminal activities such as bid rigging are a serious offense that undermine the principles of fair competition and harm our communities. This type of behavior will not be tolerated. We will aggressively investigate and bring to justice any vendor that attempts to defraud the Postal Service.”
As part of the ongoing investigation:
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ASI and another former ASI executive pleaded guilty in January 2024.
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Al’s Asphalt and two of its executives also pleaded guilty in January and October 2024.
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ASI was sentenced in August 2024 to pay a $6.5 million fine.
The investigation is being led by the Justice Department’s Antitrust Division Chicago Office, with support from the DOT-OIG and the U.S. Postal Service Office of Inspector General.
The Justice Department urges anyone with information related to this case to contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
This article, “Former President of Asphalt Paving Company Sentenced in Michigan Bid Rigging Conspiracy” was first published on Small Business Trends
Source: Small Business Trends
