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Michigan company hit with $6.5M fine for asphalt industry bid rigging

Bids gave customers the false impression of competition

Pontiac-based Asphalt Specialists LLC was sentenced to pay a criminal fine of $6.5 million for its role in conspiracies rig bids for asphalt paving services contracts in Michigan. (Canva Pro)

Pontiac-based Asphalt Specialists LLC was sentenced to pay a criminal fine of $6.5 million for its role in conspiracies rig bids for asphalt paving services contracts in Michigan.

Court documents revealed that the company pleaded guilty to its conduct on Jan. 30, 2024, as it participated in a separate conspiracy with F. Allied Construction Company Inc. Al’s Asphalt and its employees from March 2013 through November 2018.

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From July 2017 through May 2021, the company participated in a separate conspiracy with F. Allied Construction Company Inc. and its employees.

Court documents say each conspiracy operated similarly, having the co-conspirators coordinate each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids.

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

Asphalt Specialists LLC is one of three companies charged in an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry.

Al’s Asphalt pleaded guilty and was sentenced to pay a fine of $795,661.81 on July 31. Allied also pleaded guilty and is awaiting sentencing. Six individuals have also been charged in the investigation.


About the Author

Brandon Carr is a digital content producer for ClickOnDetroit and has been with WDIV Local 4 since November 2021. Brandon is the 2015 Solomon Kinloch Humanitarian award recipient for Community Service.

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