Metro Detroit asphalt company ordered to pay $6.5 million criminal fine for rigging bids for nearly a decade

(WWJ) — A Metro Detroit-based company has been ordered to pay a criminal fine of $6.5 million for its role in conspiracies to rig bids for asphalt paving contracts in Michigan.

Asphalt Specialists LLC, based in Pontiac, is accused of participating in two separate conspiracies with other paving companies for nearly a decade, according to the Justice Department.

From March 2013 through November 2018 the company participated in a conspiracy with Al’s Asphalt Paving Company and its employees, and a separate conspiracy with F. Allied Construction Company Inc. and its employees from July 2017 through May 2021, according to the department.

Officials with Asphalt Specialists pleaded guilty to the charges in January.

Both conspiracies operated similarly, officials said. The co-conspirators “coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids,” a release from the DOJ said.

Essentially, these bids “gave customers the false impression of competition when, in fact, the co-conspirators had already decided among themselves who would win the contracts.”

“When companies choose to cheat rather than compete, they can expect to pay substantial, punitive criminal fines,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will not hesitate in our shared mission to ensure those who violate the antitrust laws do not benefit from their crimes, particularly when those crimes affect critical infrastructure for our country.”

The charges against Asphalt Specialists LLC are part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the industry.

Earlier this summer Al’s Asphalt pleaded guilty and was sentenced to pay a fine of nearly $800,000. Allied has also pleaded guilty and is awaiting sentencing. Six individuals have also been charged in connection with the investigation.

The company sent the following statement to WWJ:

“ASI takes full responsibility for the unacceptable conduct in question. These past activities, which ended more than three years ago, are inconsistent with our core values and policies -- which we have since strengthened through a new code of conduct and more rigorous compliance protocols. We are pleased to put this matter behind us and move forward with a clear focus on serving our customers in accordance with all applicable laws and regulations.”

More on today's top stories: