Justice Department jury convicts two executives of concrete price-fixing conspiracy

Gregory and David Melton were convicted Friday in U.S. District Court in Savannah, Georgia, of conspiring to fix prices, rig bids and allocate markets for ready-mix concrete in Georgia and South Carolina, the verdicts marking the culmination of a wide-ranging investigation into antitrust violations in the building materials industry.

The conspiracy, which lasted from 2010 to approximately July 2016, involved a coordinated effort to manipulate prices and bids for ready-mix concrete. The Meltons and others organized price increase letters to customers, assigned specific jobs in coastal Georgia, and submitted collusive and non-competitive bids, undermining a competitive market.

Including the Meltons, this is an investigation resulted in five convictions and one deferred prosecution agreement. Earlier, James Pedrick, Timothy Strickland and Strickland’s company, Evans LLC, pleaded guilty to participating in the same conspiracy. Pedrick’s former employer, Argos USA LLC, entered into a deferred prosecution agreement with the Antitrust Division, pleaded guilty to the conspiracy and agreed to pay a $20 million penalty.

“Concrete is essential to our nation’s infrastructure,” said Assistant Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division. “Today’s convictions reflect the Antitrust Division’s commitment to holding accountable those who defraud American consumers, depriving them of the ability to purchase essential building materials free from corruption and collusion. The Division and its law enforcement partners will continue to prioritize their work prosecuting those responsible for this illegal and unethical conduct.”

U.S. Attorney Jill E. Steinberg of the Southern District of Georgia emphasized the importance of fairness in the marketplace. “Customers expect fair value for their building materials — not the enrichment of dishonest suppliers who collude to unfairly increase their profits,” Steinberg said. “This verdict makes clear that our office and our law enforcement partners will hold accountable those who break the law to increase their profits.”

Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General (DOT OIG), Southern Region, emphasized the broader implications of the case. “Bid rigging and fraud are serious crimes that negatively impact the competitive contracting market,” Harris noted. “Today’s sentence should deter individuals and companies from engaging in deceptive practices that violate federal law and the public trust.”

Violations of the Sherman Act, the federal criminal antitrust law, are felonies. Persons convicted of violating the Sherman Act can be sentenced to up to 10 years in prison and fined up to $1 million.

Source: Gov Judge