Guilty Plea in Asphalt Paving Bid Rigging Conspiracy
The former president of a Michigan-area asphalt paving company pleaded guilty yesterday for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan.
Bid Rigging Conspiracy Details
The report provides details about the bid rigging conspiracy, explaining that Israel and his company conspired with another asphalt paving company to manipulate bids in each other’s favor.
This conspiracy lasted for several years and aimed to give the illusion of competition while predetermined winners were chosen.
According to court documents filed in the U.S. District Court in Detroit, Daniel Israel, along with other individuals working for the company where Israel was formerly the president, conspired with another asphalt paving company and its employees to rig bids in each other’s favor.
The conspiracy began at least as early as March 2013 and continued until at least as late as November 2018.
Under the terms of the conspiracy, 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 already had decided among themselves who would win the contracts.
Guilty Plea and Potential Penalties
The report discusses Daniel Israel’s guilty plea, stating that he pleaded guilty to violating Section One of the Sherman Act.
It also mentions the potential penalties he could face, including up to 10 years in prison and a $1 million criminal fine.
Israel pleaded guilty to one count of violating Section One of the Sherman Act.
The maximum penalty for individuals who violate Section One of the Sherman Act is 10 years in prison and a $1 million criminal fine.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ongoing Investigation and Reporting
It also encourages individuals with information related to the investigation to come forward and report any violations.
Israel is the third individual to plead guilty as a result of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry being conducted by the Antitrust Division’s Chicago Office and the Offices of Inspectors General for the Department of Transportation and U.S. Postal Service.
Over a two week span in August, a company and two of its executives also pleaded guilty in this investigation.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.