Four executives and a corporation have been sentenced for their roles in a conspiracy involving price-fixing, bid-rigging, and job allocation in the ready-mix concrete industry in Savannah, Georgia. The individuals charged were James Clayton Pedrick, Gregory Hall Melton, John David Melton, Timothy “Bo” Strickland, along with Evans Concrete LLC. These charges were initially filed in September 2020.
Pedrick, Strickland, and Evans Concrete pleaded guilty to the charges. Meanwhile, Gregory Hall Melton and John David Melton were found guilty by a jury earlier this year at the U.S. District Court in Savannah. Argos USA LLC also admitted its involvement separately and agreed to a deferred prosecution agreement with the Justice Department’s Antitrust Division in January 2021.
Gregory Hall Melton received a sentence of 41 months in prison, three years of supervised release, and a $50,000 fine. John David Melton was sentenced to 26 months in prison, three years of supervised release, and a $10,000 fine. Previously, Strickland was sentenced to five months in prison with a $150,000 fine; Pedrick received one year of probation; Evans Concrete was fined $2.7 million. Argos USA LLC paid a $20 million criminal penalty as part of its agreement.
Court documents reveal that the conspiracy involved issuing coordinated price-increase letters to customers and submitting collusive bids from as early as 2010 until 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. He emphasized accountability for those exploiting such critical materials.
U.S. Attorney Jill E. Steinberg for the Southern District of Georgia remarked on the defendants' illegal activities: “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.”
Executive Special Agent Kenneth Cleevely from USPS OIG highlighted that such actions harm consumers by not promoting open competition: “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."
The investigation was conducted by FBI Washington Field Office alongside DOT OIG and USPS OIG. The prosecution team included Trial Attorney Patrick S. Brown and former Trial Attorney Julia M. Maloney from the Antitrust Division’s Washington Criminal Section as well as Assistant U.S. Attorney E. Greg Gilluly Jr.
The public is encouraged to report any information regarding bid rigging or anticompetitive conduct related to ready-mix concrete by contacting the Antitrust Division’s Complaint Center at 888-647-3258 or visiting www.justice.gov/atr/report-violations.
