A $100 million price-fixing conspiracy has been unmasked in Oklahoma, with Sioux Erosion Control, Inc. (Sioux), its vice president, and an employee facing the music. A federal grand jury in Oklahoma City returned an indictment, which was unsealed today, charging Sioux, BG Dale Biscoe, and Randall David Shelton with a price-fixing conspiracy targeting over $100 million in publicly-funded transportation construction contracts across Oklahoma.
According to court documents, it is alleged that Vice President BG Dale Biscoe, Randall David Shelton, and Sioux 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. In addition to conspiring to raise prices for sod, it is alleged that the defendants and their co-conspirators agreed 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.
“Protecting competition for taxpayer-funded infrastructure projects remains a priority for the Antitrust Division,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This indictment shows the Justice Department and its Procurement Collusion Strike Force partners’ commitment to protecting taxpayer dollars throughout Oklahoma and across the country from brazen collusion.”
Sioux Erosion Control, BG Dale Biscoe, and Randall David Shelton are charged with a violation of Section 1 of the Sherman Act. 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.
Four individuals — including a former Sioux employee — previously pleaded guilty for their roles in the charged conspiracy. Those individuals have not yet been sentenced.
The case was investigated by the DOT-OIG and FBI Oklahoma City Field Office. Trial Attorneys Bethany Lipman, Matthew Grisier, and Marc Hedrich of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorney Charles Brown for the Western District of Oklahoma are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state, and local.
Key Facts
- State: Oklahoma
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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