Note, the press release headline has been updated and a quote has been included from the U.S. Postal Service Inspector General.

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

Daniel L. Israel, former president of Pontiac-based Asphalt Specialists LLC (ASI), pleaded guilty in October 2023 to conspiring with Al’s Asphalt Paving Company Inc. (Al’s Asphalt), 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 $8.2 million in criminal fines.

“Economic crime — like bid rigging — is no less harmful than violent crime,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “Both inflict deep, lasting harm on our communities and disenfranchise those who believe in the American dream. As the defendant admitted, he conspired to eliminate competition to further enrich himself and his accomplices. The Antitrust Division and its law enforcement partners will continue to ensure that individuals who cheat and deprive the public of the benefits of competition are incarcerated.”

“This sentencing marks an important milestone in holding accountable those responsible for this flagrant 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 committed to working closely with our law enforcement and prosecutorial partners to investigate and prosecute individuals who undermine fair competition and violate federal antitrust laws.”

“The Postal Service maintains thousands of competitively bid contracts with private vendors to support its massive operation,” said Tammy Hull, U.S. Postal Service Inspector General. “Criminal activities such as bid rigging are a serious offense that undermine the principles of fair competition and harm our communities. This type of behavior will not be tolerated. We will aggressively investigate and bring to justice any vendor that attempts to defraud the Postal Service.”

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 from March 2013 through November 2018.

Israel’s former employer, ASI, and another former ASI executive also pleaded guilty in January 2024 for their participation in the conspiracy with Al’s Asphalt. Al’s Asphalt and two of its executives previously pleaded guilty in January and October 2024 for their participation in the conspiracy. ASI was sentenced in August 2024 to pay a fine of $6,500,000.

The Antitrust Division’s Chicago Office, DOT-OIG, and U.S. Postal Service Office of Inspector General 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 http://www.justice.gov/atr/report-violations.

Former Asphalt Company Executive Sentenced for Bid Rigging

Daniel L. Israel, the former president of Asphalt Specialists LLC, was sentenced for conspiring with Al’s Asphalt Paving Company to rig bids for asphalt paving contracts in Michigan. This case is part of a broader federal antitrust investigation that has already led to charges against seven individuals and three companies, resulting in over $8.2 million in criminal fines.

 Israel pleaded guilty in October 2023, admitting to coordinating bid prices with co-conspirators to create the illusion of competition while ensuring predetermined winners for contracts. His involvement in the conspiracy lasted from March 2013 to November 2018.

 In addition to Israel, other executives from ASI and Al’s Asphalt have also pleaded guilty, with ASI being fined $6.5 million in August 2024. The investigation was conducted by the Antitrust Division’s Chicago Office, the U.S. Department of Transportation Office of Inspector General, and the U.S. Postal Service Office of Inspector General.

 Officials emphasized the seriousness of bid rigging, equating it to violent crime in terms of its impact on communities and the economy. They reaffirmed their commitment to prosecuting those who undermine fair competition.



Former Asphalt Company Executive Sentenced for Bid Rigging

A former executive of a Michigan asphalt paving company has been sentenced to six months in prison and fined $500,000 for his involvement in a bid rigging conspiracy that spanned several years.