A former executive of a Michigan-based asphalt paving company has been sentenced to six months in prison and fined $20,000 for his involvement in a bid-rigging conspiracy. Timothy Baugher, the former president of Asphalt Specialists LLC (ASI) in Pontiac, admitted guilt to conspiring with F. Allied Construction Company Inc. (Allied) and others to manipulate bid outcomes for contracts, presenting an illusion of competition from July 2017 through May 2021.
Court documents indicate that Baugher and his co-conspirators coordinated to ensure pre-determined outcomes by submitting intentionally non-competitive bids, tricking customers about true market competition. Previously, ASI and another of its former executives pleaded guilty in January 2024 to similar charges. Allied and two of its executives had admitted guilt in August 2023. ASI was fined $6.5 million on August 15, 2024.
“There is nothing impressive, just, or indeed lawful about rigging bids with your competitors to ‘win’ a contract,” stated Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division. He noted that white-collar criminals often expect leniency, but the Antitrust Division intends to hold all lawbreakers accountable.
Baugher is one of seven individuals charged in the ongoing federal antitrust investigation targeting the asphalt paving services industry. This investigation has also charged three companies and has led to over $8.1 million in criminal fines. The investigation is being prosecuted by the Antitrust Division’s Chicago Office with the support of the Inspectors General Offices of the U.S. Department of Transportation and the U.S. Postal Service.
Information related to this investigation can be reported to the Antitrust Division’s Complaint Center via phone or the Justice Department’s website.
