Defendants in Georgia bid-rigging conspiracy sentenced
Four executives and a corporation have officially been sentenced in a long-running conspiracy to fix prices, rig bids, and allocate jobs for ready-mix concrete in the greater Savannah area.
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In September 2020, defendants James Clayton Pedrick, Gregory Hall Melton, John David Melton, Timothy "Bo" Stickland, and Evans Concrete LLC were initially charged with involvement in the conspiracy.
Court documents cite the defendants executed their conspiracy by coordinating the issuance of price-increase letters to customers, allocating specific ready-mix concrete jobs in the coastal Georgia area, and submitting bids to customers at collusive and noncompetitive prices.
The conspiracy is claimed to have begun as early as 2010 and continued until July 2016.
"Concrete is an essential material in construction projects, with prices set in the free market by the forces of supply and demand," said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. "However, the defendants in this case for several years illegally rigged the system to benefit themselves at the expense of customers and are being held accountable for their conduct."
Pedrick, Strickland, and Evans Concrete LLC pleaded guilty to their involvement, while Gregory Hall Melton and John David Melton were convicted by a jury in the U.S. District Court in Savannah earlier this year in 2024. Both men have now finally been sentenced today, October 18.
The following is the breakdown of the 5 key participant's sentencing, from before the recent convictions to now:
Gregory Hall Melton was sentenced to 41 months in prison, 3 years supervised release, and a $50,000 fine.
John David Melton was sentenced to 26 months in prison, 3 years supervised release, and a $10,000 fine.
Timothy "Bo" Stricklan was sentenced to 5 months in prison and a $150,000 fine.
James Clayton Pedrick was sentenced to one-year probation.
Evans Concrete LLC was sentenced to pay a $2.7 million fine.
Another corporation, Argos USA LLC, admitted to the courts their involvement in the conspiracy but had entered a deferred prosecution agreement (DPA). Apart of DPA, they agreed to pay a $20 million criminal penalty.
"These sentences reflect the egregious nature of rigging bids for materials like ready-mix concrete which are essential to the American economy," said Deputy Assistant Attorney General Manish Kumar of the Justice Department's Antitrust Division.
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