A former senior executive of a Michigan asphalt paving company was sentenced today to six months in prison and a $500,000 fine for his role in multiple conspiracies to rig bids for asphalt paving services contracts in Michigan.

Bruce F. Israel, former vice-president of Pontiac-based Asphalt Specialists LLC (ASI), pleaded guilty in January 2024 to conspiring with Al’s Asphalt Paving Company Inc. (Al’s Asphalt), F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor. Israel 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 $8.7 million in criminal fines.

“Bid rigging is cheating, plain and simple,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “By their own admissions, the defendant and his co-conspirators cheated their customers and betrayed the basic notions of free and fair competition, all to benefit themselves. The Antitrust Division and its law enforcement partners will bring to justice all individuals who deprive the public of the benefits of competition by seeking their incarceration.”

“Anyone choosing corporate greed over open and fair competition should take note of the sentence handed down today,” said Special Agent in Charge Anthony Licari of the Department of Transportation Office of Inspector General, Midwestern Region. “This result underscores our firm resolve and ongoing collaboration with law enforcement and prosecutorial partners to identify, expose, and dismantle any efforts to undermine the systems that exist to protect consumers.”

“Today’s sentence reflects the seriousness of bid rigging that degrades the competitive process,” said Inspector General Tammy Hull of the United States Postal Service. “We will continue to pursue and bring to justice those companies that commit fraud by conspiring to engage in anticompetitive practices for personal gain and corporate greed.”

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. Israel participated in the conspiracy with Al’s Asphalt from March 2013 through November 2018 and the Allied conspiracy from July 2017 through May 2021.

Israel’s former employer, ASI, also pleaded guilty for its participation in the Al’s Asphalt and Allied conspiracies in January 2024. Another former ASI executive, Daniel Israel, pleaded guilty for his participation in the conspiracy with Al’s Asphalt in October 2023, and a third former ASI executive, Timothy Baugher, pleaded guilty for his participation in the Allied conspiracy in January 2025. ASI was sentenced in August 2024 to pay a fine of $6,500,000.

The Antitrust Division’s Chicago Office and the Offices of Inspectors General for the Department of Transportation and U.S. Postal Service investigated the case.

The Antitrust Division’s Chicago Office is prosecuting the case.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.

Former Asphalt Executive Sentenced for Bid Rigging

Bruce F. Israel, the former vice-president of Asphalt Specialists LLC, was sentenced for conspiring to rig bids for asphalt paving contracts in Michigan. He pleaded guilty in January 2024, admitting to colluding with other companies to manipulate bid prices, which misled customers into believing there was genuine competition.

 Israel's actions were part of a broader federal antitrust investigation that has already led to charges against seven individuals and three companies, resulting in over $8.7 million in criminal fines. The Justice Department's Antitrust Division emphasized the seriousness of bid rigging, labeling it as a form of cheating that undermines fair competition.

 Co-conspirators coordinated their bids to create the illusion of competition, with pre-agreed losing companies submitting intentionally high bids. Israel's involvement spanned from March 2013 to May 2021, during which he participated in two separate conspiracies with Al’s Asphalt and Allied Construction Company.

 Asphalt Specialists LLC also pleaded guilty for its role in these conspiracies and was fined $6.5 million. The investigation was conducted by the Antitrust Division’s Chicago Office, along with the Offices of Inspectors General for the Department of Transportation and the U.S. Postal Service.



Former Asphalt Executive Sentenced for Bid Rigging

A former vice-president of an asphalt paving company has been sentenced to six months in prison and fined $500,000 for his involvement in bid rigging schemes in Michigan.