A federal jury convicted Sioux Erosion Control Inc., its part-owner and one employee on Aug. 24 for participating in a five-year price-fixing conspiracy targeting approximately $100 million in publicly funded transportation construction contracts in Oklahoma.
The convictions, secured by the Justice Department’s Antitrust Division following a criminal trial, represent one of the larger antitrust criminal cases in transportation infrastructure in recent years, according to the DOJ.
The conspiracy targeted publicly funded road and infrastructure projects, meaning taxpayer dollars directly subsidized the inflated prices charged by the conspirators. Price-fixing in public construction contracts increases costs for state transportation agencies and reduces the amount of infrastructure that can be built with available funding.
The case was investigated in coordination with the FBI and the Oklahoma Department of Transportation’s Inspector General. The convictions came after a full criminal trial rather than plea agreements, indicating the defendants contested the charges.
The convicted individuals and entity face significant prison terms and fines at sentencing, which has not yet been scheduled. Federal antitrust violations carry maximum penalties of 10 years in prison for individuals and fines of up to $100 million for corporations.
The Antitrust Division has made prosecution of bid-rigging and price-fixing in public infrastructure contracts a sustained enforcement priority, particularly as federal infrastructure spending has increased under recent legislation.
Oklahoma’s transportation infrastructure program receives substantial federal funding, meaning the conspiracy affected projects supported by Highway Trust Fund dollars collected from gasoline taxes paid by drivers nationwide.
The case sends a deterrent signal to contractors across the country that federal prosecutors will pursue criminal charges against companies and individuals who collude to inflate prices on taxpayer-funded construction projects.