On Thursday, an indictment was unsealed by the Department of Justice, accusing the vice president of a soil erosion company and one of its employees of engaging in a price-fixing scheme that involved $100 million in publicly funded contracts.
According to a recent news release from the DOJ, B.G. Dale Biscoe, who serves as the vice-president of Sioux Erosion Control, and Randall David Shelton, an employee of the same company, have been charged with violating the Sherman Act. Additionally, Sioux Erosion Control is also facing charges as a result of this investigation.
As per the news release, it is alleged that the two individuals collaborated with their competitors to increase the prices of products and services utilized for the construction and repair of highways.
According to the DOJ, the companies are suspected of engaging in bid-rigging practices, including submitting inflated bids and refusing to bid altogether on various projects. The alleged collusion resulted in the unfair division of contracts throughout the state. These activities took place from September 2017 to April 2023.
The Department of Justice has reported that four individuals have admitted to their role in the scam and are presently awaiting sentencing.
If proven guilty, Biscoe and Shelton could face a maximum sentence of 10 years in prison and a fine of $1 million. Additionally, the company may be subjected to a fine of up to $100 million as per the DOJ.
Acting Special Agent in Charge Joseph Skarda of the FBI Oklahoma City Field Office, in conjunction with the Department of Transportation Office of Inspector General, probed the case and announced today’s declaration. This illustrates the FBI’s dedication to safeguarding competitive markets from fraudulent individuals.
Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General Southern Region has emphasized that any breaches of the country’s antitrust laws will not be tolerated. Moreover, those who attempt to bypass federal bidding and contract regulations will face the consequences of their actions. Harris added that the investigation into such fraudulent schemes highlights the agency’s dedication to collaborating with law enforcement and prosecutorial partners to uncover and bring to light such dishonest practices designed solely for personal gain.