Michigan Court Imposes Sentence on Ex-Asphalt Paving Firm President for Bid-Rigging Scheme
A Michigan-based asphalt paving company executive has been sentenced to prison and fined heftily for his role in a multi-year bid-rigging scheme that swindled customers and subverted fair competition.
Daniel L. Israel, the former president of Asphalt Specialists LLC (ASI) in Pontiac, was handed a six-month prison term and a $500,000 fine on May 22 following his guilty plea to conspiring with Al's Asphalt Paving Company Inc. and other accomplices to manipulate bids on asphalt paving contracts across Michigan. Israel admitted to colluding with employees from both companies to submit fraudulent bids that intentionally lacked competition and guaranteed predetermined results.
Spanning from March 2013 through November 2018, the conspiracy aimed to deceive clients while agreeing in advance which company would win specific contracts. As per the Department of Justice, this collusion targeted Michigan's asphalt paving market, undermining legitimate competition.
Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division remarked, "Economic crime - like bid rigging - is no less harmful than violent crime. Both inflict deep, lasting harm on our communities and disenfranchise those who believe in the American dream. Those who cheat and deprive the public of the benefits of competition will be incarcerated."
This sentencing forms part of a broader federal antitrust investigation into anticompetitive practices within the asphalt paving industry. To date, seven individuals and three companies have been charged, amassing more than $8.2 million in criminal fines.
"This sentencing marks an important milestone in holding accountable those responsible for this brazen bid-rigging scheme," said Special Agent in Charge Anthony Licari of the U.S. Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region. "We remain steadfast in our collaboration with law enforcement and prosecutorial partners to investigate and prosecute anyone who undermines fair competition and breaks federal antitrust laws."
The investigation, led by the Justice Department's Antitrust Division Chicago Office, with support from the DOT-OIG and the U.S. Postal Service Office of Inspector General, is ongoing. Anyone with information related to this case is encouraged to contact the Antitrust Division's Complaint Center at 888-647-3258 or visit
The conviction and heavy penalties imposed on Daniel L. Israel, a former asphalt executive, are a part of a broader investigation into anticompetitive practices within the business sector of asphalt paving, specifically the crime-and-justice domain. The collusive scheme orchestrated by Israel and his accomplices constitutes a form of economic crime, severely damaging fair competition in the general-news arena of Michigan's asphalt paving market.
