A federal jury in Oklahoma City convicted Sioux Erosion Control Inc., its part-owner and an employee on Aug. 20 for a five-year price-fixing conspiracy targeting more than $100 million in publicly funded transportation construction contracts.
The conviction means taxpayer funds paid artificially inflated prices for erosion control services on government-funded road and infrastructure projects, according to the DOJ’s Antitrust Division.
The conspiracy involved bid rigging on public contracts, a practice in which competitors agree in advance which company will submit the winning bid and at what price, eliminating genuine competition and driving up costs borne by taxpayers, the department said.
The convicted individuals face federal sentencing under Sherman Act prosecution guidelines, which carry potential prison terms and substantial fines. Corporate conviction carries fines that can reach hundreds of millions of dollars based on the volume of affected commerce.
Price-fixing in the transportation construction sector is a recurring DOJ Antitrust Division enforcement priority because it directly inflates the cost of publicly funded infrastructure. The $100 million in affected contracts represents a significant share of government-funded erosion control work during the conspiracy period.
Erosion control services are required components of virtually every major road construction project to prevent soil runoff and environmental damage. The sector’s reliance on government contracts makes it particularly vulnerable to bid-rigging schemes.
For American taxpayers, the conviction confirms that a significant volume of public infrastructure spending was subject to illegal price inflation over five years. The case is expected to lead to civil damages claims that could recover additional funds.
Sentencing dates for the convicted individuals and the company were not specified in the DOJ’s announcement.