Pontiac-Based Asphalt Specialists LLC Hit With $6.5M Fine for Bid-Rigging in Michigan Paving Industry

A Metro Detroit asphalt company, known as Asphalt Specialists LLC, has been ordered to cough up a hefty $6.5 million criminal fine for its involvement in bid-rigging conspiracies that swindled Michigan's competitive paving contracts. According to the Department of Justice, the Pontiac-based firm pleaded guilty to partaking in underhanded dealings from March 2013 all the way through May 2021.

The conspiracies, as outlined by court documents, worked in a rather straightforward but illegal manner—companies, including Asphalt Specialists, coordinated to deliberately submit non-competitive bids to create a false aura of competition. The Justice Department has made clear that such actions to unjustly secure contracts will not be tolerated. In a statement, Deputy Assistant Attorney General Manish Kumar expressed the government's resolve, “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,” as per Department of Justice.

As part of the same investigation that ensnared Asphalt Specialists, two other companies and six individuals have also been charged. Al’s Asphalt Paving Company previously pleaded guilty and was fined nearly $800,000 while F. Allied Construction Company Inc. has also pleaded guilty and is currently awaiting sentencing. The Departments of Transportation and Justice, alongside the U.S. Postal Service's law enforcement arms, are spearheading the ongoing investigation.

Responding to the sentencing, Asphalt Specialists LLC has accepted full responsibility, despite the criminal activities ceasing over three years ago. The company stated to WWJ that “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.”