The former president of a Michigan asphalt paving specialist has pleaded guilty to knowingly rigging bids for state contacts.
Timothy Baugher, former president of Pontiac-based Asphalt Specialists LLC (ASI), has confirmed that he played a significant role in this conspiracy. Seven senior individuals have pleaded guilty.
The Antitrust Division’s Chicago Office and the Offices of Inspectors General for the U.S. Department of Transportation and the U.S. Postal Service lead the investigation into the Michigan area asphalt industry and collusion in rig bids.
Former asphalt head pleads guilty
The Justice Department has announced that Baugher “conspired with F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor.” Baugher has admitted to his part in the conspiracy from July 2017 through May 2021.
Due reported that Al’s Asphalt Paving Company Inc. (Al’s Asphalt), also of Michigan, and its employees participated in similar bid rigging from March 2013 through November 2018. Then, in connection with Allied Construction Company Inc. (Allied) and its employees from July 2017 through May 2021
The company was fined $6.5M for rigging contractual bids and colluding with other companies in the state. At the time, Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division said, “When companies choose to cheat rather than compete, they can expect to pay substantial, punitive criminal fines.”
Baugher has pleaded guilty to his part in the scheme, most notably to one charge of violating Section 1 of the Sherman Act. He risks a ten-year prison term and a $1 million criminal fine. The maximum penalty for ASI is a $100 million criminal fine.
“Fair and open marketplace competition is essential in providing consumers and taxpayers the integrity expected in procuring contracts funded with public dollars,” said Special Agent in Charge Anthony Licari of the Department of Transportation’s Office of Inspector General, Midwestern Region. “Corporate executives who collude to fixing prices and rigging bids will be held accountable.”
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