Federal prosecutors accuse Oklahoma company in $100 million price-fixing scheme

(The Center Square) - The Department of Justice accused the vice president of a soil erosion company and one of its employees of a price-fixing scheme involving $100 million in publicly funded contracts, according to an indictment unsealed on Thursday.

B.G. Dale Biscoe, vice-president of Sioux Erosion Control and Randall David Shelton, an employee of the company, are charged with a violation of the Sherman Act, according to a DOJ news release. Sioux Erosion Control is also facing charges, authorities said.

The two allegedly conspired with their competitors to raise the prices for products and services that are used for highway construction and repair products, according to the news release.

The companies would allegedly submit high bids or refused to bid on projects and conspired to divide up contracts across the state, the DOJ said. The incidents occurred between September 2017 and April 2023.

Four other people have pleaded guilty for their role in the scheme and are awaiting sentencing, according to the DOJ.

Biscoe and Shelton face a sentence of up to 10 years in prison and a $1 million fine if convicted. The company could receive a fine of up to $100 million if found guilty of the charge, according to the DOJ.

“Today’s announcement represents the FBI’s commitment to protecting competitive markets from those who try to cheat the system,” said Acting Special Agent in Charge Joseph Skarda of the FBI Oklahoma City Field Office, which investigated the case along with the Department of Transportation Office of Inspector General.

“Violations of the nation’s antitrust laws will be taken seriously and those who circumvent federal bidding and contract regulations will be held accountable,” said Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General Southern Region. “This investigation demonstrates our commitment to working with our law enforcement and prosecutorial partners to uproot and expose brazen fraud schemes devised purely for personal gain.”