US Justice Department sentences two more in Georgia bid-rigging conspiracy
21 October 2024
The US Department of Justice (DOJ) handed down two more sentences for a bid-rigging case in Georgia, US, in which five defendants were accused of price-fixing and bid-rigging in the ready-mix concrete sector.
A statue of Lady Justice holding a balance. (Image: Adobe Stock)
On 17 October, the DOJ sentenced Gregory Hall Melton to 41 months in prison along with three years of supervised release and ordered him to pay a US$50,000 fine. On the same day, John David Melton was sentenced to 26 months in prison, with three years of supervised release and ordered to pay a $10,000 fine. Both were convicted by a jury in the US District Court in Savannah, Georgia, earlier this year.
According to the DOJ and court documents, the defendants effectuated their conspiracy by coordinating the issuance of price-increase letters to customers, allocating specific ready-mix concrete jobs in the coastal Georgia area, and submitting bids to customers at collusive and noncompetitive prices. The charged conspiracy began as early as 2010 and continued until about July 2016.
“The conspirators submitted rigged bids and accepted payments for ready-mix concrete sold through contracts and on projects that were affected by the alleged conspiracy,” said the DOJ in 2020, when the charges were first filed. “In order to carry out the conspiracy, the conspirators used [another Defendant] as a conduit to exchange price-increase letters and other competitive information between the defendants and other co-conspirators for the purpose of coordinating price increases, rigging bids and allocating jobs.”
Additional information on the Georgia concrete bid-rigging conspiracy
Previously, three others had plead guilty to their roles in the scheme: James Clayton Pedrick (one year probation), Timothy “Bo” Strickland (five months prison, $150,000 fine), and corporation Evans Concrete LLC ($2.7-million fine).
Another firm, Argos USA LLC, had separately admitted to its role in the conspiracy, the DOJ said. It was entered into a deferred prosecution agreement and ordered to pay $20 million in fines.
“Concrete is an essential material in construction projects, with prices set in the free market by the forces of supply and demand,” said US Attorney Jill E. Steinberg for the Southern District of Georgia. “However, the defendants in this case for several years illegally rigged the system to benefit themselves at the expense of customers and are being held accountable for their conduct.”
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