New York Paving Company Sentenced and Ordered to Pay $326,343 in Restitution for Bid Rigging Scheme on New York Paving Contracts
October 19, 2007
On October 19, 2007, Suffolk Asphalt Supply, Inc. (SAS) was sentenced in U.S. District Court, Central Islip, New York, for conspiring with several individuals and companies to rig the bids of various roadway projects sponsored by the Suffolk County Department of Public Works (SCDPW) and the Town of Brookhaven, New York. SAS was found jointly and severally liable and ordered to pay $326,343 in restitution to Suffolk County and the Town of Brookhaven. The company was also sentenced to serve three years probation and was ordered not to perform any municipal work while on probation. On December 22, 2006, James K. Haney, President of SAS, pled guilty personally and on behalf of the company to conspiracy charges related to bid–rigging and mail fraud conspiracy. The investigation revealed that between July 2003 and September 2005, the defendants manipulated the awarding of SCDPW and the Brookhaven contracts for road repairs, and artificially inflated the costs of such contracts through a system of bid rigging. FHWA suspended Mr. Haney and SAS effective on March 30, 2006 and debarment is pending.