Construction company indicted over alleged $100m price-fixing conspiracy

Image: United States Department of JusticeVectorization: Ali Zifan, Public domain, via Wikimedia Commons

A federal grand jury in Oklahoma City returned an indictment in relation to the case that was unsealed yesterday (8 August).

According to court documents, it is alleged that Sioux Erosion Control, its vice president BG Dale Biscoe, and employee Randall David Shelton conspired with their competitors in the erosion control industry to raise and maintain prices for products and services from approximately September 2017 through April 2023.

Erosion control products and services, including sod, are used to control runoff of soil or rock on highway construction and repair projects.

A statement from the US Department of Justice said that in addition to allegedly conspiring to raise prices for sod, the defendants and their co‑conspirators are also accused of agreeing to divide up contracts across different areas of Oklahoma and rigged bids for particular projects by submitting intentionally high-priced bids or outright refusing to bid.

Four individuals — including a former Sioux employee — previously pleaded guilty for their roles in the charged conspiracy. Those individuals have not yet been sentenced.

Biscoe, Shelton and Sioux Erosion Control are charged with a violation of Section 1 of the Sherman Act. If convicted, the maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.