Jury Convicts Two Executives in Conspiracy to Fix Prices, Rig Bids, Allocate Markets for Concrete

Staff
By Staff
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A jury convicted Gregory and David Melton yesterday in the U.S. District Court in Savannah, Georgia, for their role in a conspiracy to fix prices, rig bids and allocate markets for sales of ready-mix concrete in Georgia and South Carolina.

The conspiracy, which began as early as 2010 and continued until about July 2016, involved coordinating price-increase letters to customers, allocating specific jobs in the coastal Georgia area and submitting bids to customers at collusive and noncompetitive prices.

Including yesterday’s verdicts, this investigation resulted in five criminal convictions and one deferred prosecution agreement. Defendants James Pedrick, Timothy Strickland and Strickland’s company, Evans LLC, previously pleaded guilty as a part of the same conspiracy.

Pedrick’s former employer, Argos USA LLC, previously entered into a deferred prosecution agreement with the Antitrust Division, admitted to its participation in the conspiracy and agreed to pay a $20 million criminal penalty.

Violating the Sherman Act, which is a federal criminal antitrust statute, is a felony. The maximum penalty for individuals convicted of violating the Sherman Act is 10 years in prison and a $1 million criminal fine.

The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Washington Field Office, DOT OIG and USPS OIG investigated the case.

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