Two individuals have been indicted in a $100 million price-fixing conspiracy that revolved around public contracts.
The Vice President and one employee of Sioux Erosion Control, Inc. (Sioux) are under investigation by regulators. The company has also come under scrutiny for its role in the conspiracy surrounding publicly funded transportation construction contracts across Oklahoma.
Sioux Company and employees involved in $100m indictment
Vice President BG Dale Biscoe, Randall David Shelton, and Sioux are embroiled in allegations that they schemed to “raise and maintain prices for products and services from approximately September 2017 through April 2023.”
According to the Justice Department, erosion control products like sod were the focus of the price hike. Sod is used in erosion control as a key material in staunching runoff soil or rock that can be the result of maintenance work.
It was alleged that Sioux, Biscoe, and Shelton conspired to raise the price of sod across Oklahoma and rigged the bids for specific works in the state. Driving a false economy for public contracts in the area and intentionally skewing the average of a bid to cause uncertainty in the bidding process.
“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 (DOT-OIG), Southern Region.
The collective of Biscoe, Shelton, and the company, Sioux, have been charged with violating the Sherman Act, specifically Section 1.
Sioux could face a $100 million criminal fine for their collaboration, and both Biscoe and Shelton could face ten years behind bars and a $1 million fine.
“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. “We will continue to work alongside our law enforcement partners to uncover these harmful schemes and hold the perpetrators responsible.”
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