A former senior executive of a Michigan asphalt paving company was sentenced today to six months in prison and a $20,000 fine for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan.
Timothy Baugher, former president of Pontiac-based Asphalt Specialists LLC (ASI), pleaded guilty to conspiring with F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor on Jan. 8. According to court documents, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators already had decided among themselves who would win the contracts. Baugher participated in the conspiracy from July 2017 through May 2021.
Baugher’s former employer, ASI, and another former ASI executive also pleaded guilty for their participation in the conspiracy with Allied in January 2024. Allied and two of its executives previously pleaded guilty in August 2023 for their participation in the conspiracy. On Aug. 15, 2024, ASI was sentenced to pay a fine of $6,500,000.
“There is nothing impressive, just, or indeed lawful about rigging bids with your competitors to ‘win’ a contract,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “As the court itself noted, white-collar criminals mistakenly expect better treatment than blue-collar criminals. The Antitrust Division and its law enforcement partners will enforce the law against all individuals who seek to cheat and deprive the public of the benefits of competition.”
Baugher is one of seven individuals that have been charged as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry. Three companies also have been charged as part of the investigation, which, to date, has resulted in over $8.1 million in criminal fines.
The Antitrust Division’s Chicago Office is prosecuting the case, which was investigated with the assistance of the Offices of Inspectors General for the U.S. Department of Transportation and U.S. Postal Service.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit https://www.justice.gov/atr/report-violations .