Concrete Companies Sentenced for Conspiring to Manipulate the Ready-Mix Concrete Market
On February 2, 2012, GCC Alliance Concrete (GCC), Great Lakes Concrete, and Tri-State Ready-Mix were sentenced in U.S. District Court, Sioux Falls, Iowa, for Sherman Act violations involving a scheme to manipulate the ready-mix concrete market via rigged bids and territorial allocations for ready-mix concrete sold in Iowa. On the following day, February 3, 2012, VS Holdings Company was sentenced for their involvement in this scheme.
GCC received 18 months probation; $1,200 special assessment; and community service defined by supplying $100,000 in concrete to non-profit organizations in the affected areas of the fraud. In addition, GCC has to include $10,000 in advertising to solicit non-profits to define desired projects and to announce that this advertising is in response to their 18 month probation. GCC's probation will end upon the completion of any work, or after 18 months.
Great Lakes Concrete received no probation, due to the fact that Kent Stewart, President, was fined $400,000; paid a special assessment of $400 and is currently on supervised release.
Tri-State Ready Mix received 5 years probation; $500,000 fine; and a special assessment of $400.
VS Holding Company was ordered to pay a $300,000 fine and a $400 special assessment.
The affected volume of commerce in this case was $14.7 million. This case was successfully prosecuted with the assistance of the FBI and the DOJ Antitrust Division.