An indictment that was made public on Thursday by the Department of Justice says that the vice president of a company that deals with soil erosion and one of its workers were involved in a scheme to fix prices for $100 million in government contracts.
A news statement from the DOJ says that vice president of Sioux Erosion Control B.G. Dale Biscoe and employee Randall David Shelton are both charged with breaking the Sherman Act. The government also said that Sioux Erosion Control is facing charges.
It was said in the news release that the two worked together with their rivals to raise the prices of goods and services used for building and fixing highways.
The DOJ said the companies planned to split up contracts across the state by putting in high bids or not bidding at all on jobs. The events took place from September 2017 to April 2023.
The DOJ says that four other people have pleaded guilty to their parts in the plan and are now waiting to be sentenced.
They could get up to 10 years in jail and a $1 million fine if they are found guilty. The company could be fined up to $100 million by the DOJ if it is found guilty of the charge.
“Today’s announcement shows that the FBI is committed to keeping competitive markets safe from people who try to game the system,” said Joseph Skarda, acting special agent in charge of the FBI’s Oklahoma City field office. The case was looked into by both the FBI and the Office of Inspector General at the Department of Transportation.
Antitrust laws will be strictly enforced, and people who try to get around government rules on bidding and contracts will be held responsible, said Joseph Harris, Special Agent in Charge of the Department of Transportation Office of Inspector General Southern Region. “This investigation shows that we are committed to working with our law enforcement and prosecutors partners to stop and reveal blatant fraud schemes that are only meant to make money for the fraudsters.”