A former high-ranking Michigan asphalt company executive is looking at six months behind bars and a hefty $500,000 fine for his part in an asphalt paving contract bid-rigging scandal. Daniel L. Israel, once President of Asphalt Specialists LLC (ASI), based out of Pontiac, entered a guilty plea last October for spearheading a bid-rigging conspiracy with a rival, Al's Asphalt Paving Company Inc., as reported by the U.S. Attorney's Office.
Israel isn't the only individual snared in this unfolding inquiry, with seven charged to date in the federal antitrust investigation that's also taken aim at three separate companies. These efforts to uncover pervasive anticompetitive conduct in Michigan's asphalt paving services industry have, until now, chalked up over $8.2 million in criminal fines. "Both inflict deep, lasting harm on our communities and disenfranchise those who believe in the American dream," Acting Deputy Assistant Attorney General Omeed A. Assefi said in a statement obtained by the U.S. Attorney's Office, likening the effects of economic crimes like bid rigging to those of violent crimes.
The crux of the conspiracy involved an arrangement between the co-conspirators to modify their bid prices, ensuring that the designated loser would offer deliberately uncompetitive bids. This practice provided an illusion of competition to customers while the reality was prearranged and devoid of any real contest. According to the U.S. Attorney's Office, Israel was embroiled in this deceitful activity from March 2013 through November 2018.
The case investigation, which eventually led to Israel's sentencing, was a joint effort by the Antitrust Division's Chicago Office, the U.S. Department of Transportation Office of Inspector General (DOT-OIG), and the U.S. Postal Service Office of Inspector General. Reaffirming the government's intolerance for such unethical practices, Special Agent in Charge Anthony Licari of the DOT-OIG, Midwestern Region, stated, "We remain committed to working closely with our law enforcement and prosecutorial partners to investigate and prosecute individuals who undermine fair competition and violate federal antitrust laws," in a press release published by the U.S. Attorney's Office.
This sentencing is not an isolated event, but part of a broader strategy to clamp down on antitrust violations. Tammy Hull, U.S. Postal Service Inspector General, emphasized that actions threatening fair competition would be met with forceful investigation and prosecution in order to protect the integrity of competitive bidding. For those with further information linked to this investigation, the U.S. Attorney's Office has urged them to reach out to the Antitrust Division's Complaint Center.
