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Ex-Asphalt Company President Pleads Guilty in Bid-Rigging Case

By  |  October 31, 2023
Ex-Asphalt Company President Pleads Guilty in Bid-Rigging Case

Daniel Israel, the former president of a Michigan-based asphalt paving company, admitted his involvement in a bid-rigging conspiracy for asphalt paving services contracts within the state. According to official court documents filed in the U.S. District Court in Detroit, Israel and associates from his former company, along with another asphalt paving firm, conspired to manipulate bid outcomes in their favor.

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    The collusion, which started in March 2013 and persisted until at least November 2018, involved coordinating bid prices to ensure that the predetermined losing company submitted intentionally non-competitive bids. This deceptive strategy created the illusion of competition when, in reality, the conspirators had already decided among themselves which company would secure the contracts.

    Read more: US: Paving companies accused of monopoly

    Israel pleaded guilty to a violation of Section One of the Sherman Act. This violation carries a maximum penalty of 10 years in prison and a criminal fine of up to $1 million. The actual sentence will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other relevant statutory factors.

    This marks the third guilty plea resulting from an ongoing federal antitrust investigation into bid rigging and anti-competitive practices in the asphalt paving services industry. The investigation is being conducted jointly by the Antitrust Division’s Chicago Office, along with the Offices of Inspectors General for the Department of Transportation and the U.S. Postal Service. In August, during a two-week period, a company and two of its executives also pleaded guilty as part of this probe.

    Source: Justice Gov