An Oklahoma contractor specialising in erosion control on highway projects has been charged, along with its vice president and another employee, with a price-fixing conspiracy targeting more than $100m worth of publicly-funded construction contracts in the state.
Following an investigation by the FBI and the Department of Transportation Office of Inspector General, prosecutors allege that Sioux Erosion Control, Inc, its vice president BG Dale Biscoe, and employee Randall David Shelton conspired with competitors to raise and maintain prices for products and services approximately between September 2017 and April 2023.
Erosion control products and services, including sod, are used to control runoff of soil or rock on highway construction and repair projects.
Prosecutors also allege that the defendants and their co-conspirators agreed to divide up contracts across different areas of Oklahoma and rigged bids for particular projects by submitting intentionally high-priced bids or outright refusing to bid.
Biscoe, Shelton and Sioux are charged with violating Section 1 of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine.
The maximum penalty for corporations is a $100m criminal fine.
A former Sioux employee and three other individuals previously pleaded guilty for their roles in the charged conspiracy, the Department of Justice noted. They have not been sentenced yet.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Protecting competition for taxpayer-funded infrastructure projects remains a priority for the Antitrust Division,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.
“This indictment shows the Justice Department and its Procurement Collusion Strike Force partners’ commitment to protecting taxpayer dollars throughout Oklahoma and across the country from brazen collusion.”
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