VP Of Asphalt Company Pleads Guilty In Bid-Rigging Conspiracies

DETROIT — A senior executive of a Michigan asphalt paving company pleaded guilty last week in federal court in Detroit for his role in two conspiracies to rig bids for paving contracts, according to the U.S. Department of Justice.

Kevin Shell, vice president of estimating for Clarkston-based F. Allied Construction Co. Inc., conspired with two other companies and their employees to rig bids in each other’s favor, authorities said Thursday. The agreed-upon losing company would intentionally submit non-competitive bids, according to the department.

“These bids gave customers the false impression of competition when, in fact, the co-conspirators had already decided among themselves who would win the contracts,” a department news release said.

The conspiracies took place from June 2013 to June 2019 and from July 2017 to May 2021, according to the department.

Shell pleaded guilty to two counts of violating Section One of the Sherman Act, authorities said. The maximum penalty for such a violation is 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations, according to the department. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum, authorities said.

Anyone with information related to the investigation is asked to call 888-647-3258 or visit www.justice.gov/atr/report-violations.