Four executives and a corporation were sentenced last week in the US state of Georgia for participating in a long-running conspiracy to fix prices, rig bids and allocate jobs for ready-mix concrete in the greater Savannah area.
James Clayton Pedrick, Gregory Hall Melton, John David Melton, Timothy “Bo” Strickland and Evans Concrete LLC were charged in September 2020 with conspiring to fix prices, rig bids and allocate jobs for the sale of concrete in residential, commercial and public projects.
Pedrick, Strickland and Evans Concrete later pleaded guilty for their participation in this conspiracy.
Gregory Hall Melton and John David Melton were convicted by a jury in the US District Court in Savannah earlier this year.
Argos USA LLC separately admitted to its role in the conspiracy and entered into a deferred prosecution agreement (DPA) with the Justice Department’s Antitrust Division in January 2021.
On Thursday, 17 October Gregory Hall Melton was sentenced to 41 months in prison, three years of supervised release, and to pay a $50,000 fine.
The same day, John David Melton was sentenced to 26 months in prison, three years of supervised release, and to pay a $10,000 fine.
The court previously sentenced Strickland to five months in prison and to pay $150,000 fine, Pedrick to one year of probation, and Evans Concrete to pay a $2.7m fine.
Argos USA LLC paid a $20m criminal penalty as part of its DPA.
According to court documents, the defendants effectuated their conspiracy by coordinating the issuance of price-increase letters to customers, allocating specific ready-mix concrete jobs in the coastal Georgia area, and submitting bids to customers at collusive and noncompetitive prices.
The charged conspiracy began as early as 2010 and continued until about July 2016.
“These sentences reflect the egregious nature of rigging bids for materials like ready-mix concrete which are essential to the American economy,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will hold accountable those who seek to exploit the critical need for these materials to harm consumers.”
“Concrete is an essential material in construction projects, with prices set in the free market by the forces of supply and demand,” said US Attorney Jill E. Steinberg for the Southern District of Georgia. “However, the defendants in this case for several years illegally rigged the system to benefit themselves at the expense of customers and are being held accountable for their conduct.”
“Activities related to bid-rigging and collusion do not promote an environment conducive to open competition which harms the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of US Postal Service’s Office of Inspector General (USPS OIG). “The sentencing in this case represents a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served.
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