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Paving Companies and Owners Plead Guilty in Long Island Bid-Rigging Case

On December 22, 2006, three paving contractors and five companies they operated pleaded guilty in U.S. District Court in Central Islip, New York, to conspiracy charges related to bid-rigging on various roadway projects sponsored by the Suffolk County Department of Public Works and the Town of Brookhaven, New York. Pleading guilty were: Frank G. Schambra, president of Sundial Asphalt; James K. Haney, president of Suffolk Asphalt Supply; and William L. Fehr, Jr., president of All-County Paving and a vice president of Prima Asphalt Concrete, of which Pav-Co Asphalt is a subsidiary. As part of the plea, the defendants agreed to forfeit $2.3 million and pay $326,000 in restitution to the county and town.

The investigation found that between July 2003 and September 2005, the contractors manipulated the awarding of Suffolk County contracts for road maintenance and repair and Brookhaven contracts for asphalt for road repairs. The contractors artificially inflated the cost of the contracts through a system of bid-rigging. While no Federal funds were involved in the conspiracy, FHWA has suspended four of the companies from doing business with the Federal government. Prima has also been referred to FHWA for suspension. Haney will be sentenced on March 23, 2007, Fehr will be sentenced on March 30, 2007, and Schambra will be sentenced on April 13, 2007. This investigation was conducted with the FBI.