BC Flynn Contracting Corp. and Axion Specialty Contracting LLC have entered guilty pleas in a federal court in Connecticut, admitting to their involvement in a conspiracy to rig bids on insulation contracts. The charges against them include violations of antitrust laws and, for BC Flynn, criminal fraud related to these contracts.
The plea agreements were filed in the U.S. District Court in Bridgeport. They reveal that BC Flynn and Axion conspired with other companies and individuals to manipulate bids for insulation installation around pipes and ducts at various construction projects across universities, hospitals, and other entities in Connecticut. This scheme reportedly lasted nearly seven years, from June 2011 until March 2018. Prior to this development, four individuals and one company had already pleaded guilty to related charges.
Assistant Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division emphasized the importance of fair contracting processes for construction projects funded by taxpayers: “Construction and infrastructure projects — many of them funded in whole or part by taxpayers — deserve to have contracting processes that are fair and competitive.” He added that efforts would continue with law enforcement partners to hold accountable those who defraud such projects.
U.S. Attorney Vanessa Roberts Avery for the District of Connecticut commented on the nature of the conspiracy: “The plea agreements detail how the perpetrators submitted collusive bids and shared bid numbers with their competitors in an illegal effort to improve their companies’ bottom lines.” She commended both the FBI and DCIS for investigating this scheme.
Special Agent David Sundberg from the FBI New Haven Field Office reiterated the agency's commitment: “Free and open markets are the foundation of a vibrant economy,” he said, stressing their dedication to probing antitrust crimes that limit competition within construction sectors.
Patrick J. Hegarty from DCIS Northeast Field Office highlighted their focus on maintaining integrity within DoD procurement systems: “Anticompetitive and fraudulent practices undermine legitimate procurement processes designed to ensure equity among parties that do business with the DoD.”
The announced antitrust charges carry potential fines up to $100 million per defendant corporation, while BC Flynn faces an additional fraud conspiracy charge with a maximum fine of $500,000. These fines could be doubled based on either gains derived from or losses suffered due to these crimes if they exceed statutory limits. Both corporations have agreed under plea deals—pending court approval—to pay restitution.
In November 2019, the Department of Justice launched its Procurement Collusion Strike Force aimed at combating antitrust violations affecting government procurements at all levels.
