The former president of a Michigan asphalt paving company has admitted guilt in a conspiracy to manipulate bids for contracts in the state. Timothy Baugher, previously at the helm of Pontiac-based Asphalt Specialists LLC (ASI), conspired with F. Allied Construction Company Inc. and their employees to favor each other’s bids, according to documents filed in the U.S. District Court for the Eastern District of Michigan.
Baugher's involvement in this bid-rigging scheme spanned from July 2017 through May 2021. His plea is part of an ongoing investigation by the Antitrust Division into collusion within Michigan's asphalt paving sector, marking the tenth guilty plea in this probe.
Earlier, ASI and another executive had pleaded guilty to similar charges alongside Allied and two of its executives who admitted guilt back in August 2023. ASI was subsequently fined $6.5 million on August 15, 2024.
The conspiracy involved co-conspirators coordinating bid prices such that one company would intentionally submit non-competitive bids, misleading customers about genuine competition while pre-deciding contract winners among themselves.
“Americans deserve to pay a fair, competitive price to fix transportation infrastructure,” stated Acting Assistant Attorney General Doha Mekki from the Justice Department’s Antitrust Division. “The division and our law enforcement partners will continue to hold accountable executives who cheat consumers by undermining the competitive process.”
Anthony Licari, Special Agent in Charge at the Department of Transportation’s Office of Inspector General for the Midwestern Region emphasized that "Fair and open marketplace competition is essential in providing consumers and taxpayers with integrity expected in procuring contracts funded with public dollars." He further added that corporate executives involved in price-fixing would be held responsible.
Kenneth Cleevely, Executive Special Agent in Charge at the U.S. Postal Service Office of Inspector General remarked on how activities like bid-rigging harm consumer interests: “Activities related to bid-rigging and collusion do not promote an environment conducive to open competition which harms the consumer.” He also noted that Baugher's guilty plea was a victory for law enforcement agencies committed to ensuring justice against harmful conduct.
This development is part of a federal antitrust investigation targeting bid rigging and anti-competitive practices within asphalt paving services led by several inspector general offices along with the Antitrust Division’s Chicago Office.
Individuals possessing relevant information are encouraged to contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.
