In a major development in Michigan’s ongoing asphalt paving bid-rigging investigation, a former company executive has been sentenced to prison. The case highlights how dishonest business deals can harm the public by faking competition and raising costs for paving projects.
What Was the Case About?
Timothy Baugher, the former president of Pontiac-based Asphalt Specialists LLC (ASI), was sentenced to six months in prison and fined $20,000 for his part in a bid-rigging conspiracy. This illegal scheme involved secretly working with competitors to decide who would win public contracts, while pretending to compete fairly.
Between July 2017 and May 2021, Baugher and employees of ASI teamed up with Allied Construction Company Inc. and its workers to plan which company would “win” certain bids. They submitted fake bids that were higher or intentionally uncompetitive, so the chosen company would appear to win fairly, when in reality, the decision was made in advance.
How Did the Bid-Rigging Work?
The two companies, ASI and Allied, would agree beforehand on who should get a contract. Then, the losing company would submit a bid that looked like competition but wasn’t serious. This tricked the customers into thinking there was a fair bidding process, when in fact, it was all planned out behind closed doors.
This kind of behavior hurts taxpayers and public projects. It means government contracts may cost more than they should, and the quality of the work may suffer because there’s no true competition.
Who Else Was Involved?
This case is part of a larger federal investigation. So far, seven individuals and three companies have been charged. ASI, Baugher’s former employer, pleaded guilty in January 2024. The company was ordered to pay a $6.5 million fine in August 2024. Another ASI executive and Allied Construction, along with two of its executives, have also pleaded guilty in the same conspiracy.
The total amount of criminal fines collected so far in this investigation has reached over $8.1 million.
Government Response and Remarks
Acting Deputy Assistant Attorney General Omeed A. Assefi from the Justice Department’s Antitrust Division strongly criticized bid rigging, stating that white-collar crimes like this should not be treated lightly. He emphasized that whether someone wears a suit or a uniform, illegal behavior should be punished equally.
He also pointed out how these schemes take away the benefits of fair competition and harm the public by making services more expensive and less reliable.
Who Investigated the Case?
The case is being handled by the Antitrust Division’s Chicago Office. The investigation received support from the Offices of Inspectors General from both the U.S. Department of Transportation and the U.S. Postal Service. Their work helped uncover the illegal coordination that had gone unnoticed for years.
This case is a reminder that fair competition is important in public projects. When companies secretly plan who will win, it’s not just unfair—it’s illegal. The government’s ongoing investigation is holding individuals and companies accountable for their actions, and more charges may still come as the case continues.
