Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Traffic Control Device Company Pleads Guilty to Bid Rigging in Violation of Ohio State Antitrust Law, (Dec 19, 2012)

The Ohio Attorney General’s Office and the Hamilton County Prosecutor’s Office have accepted guilty pleas from an Ohio company and its sales manager over Ohio Valentine Act violations stemming from their involvement in rigging bids submitted to the Ohio Department of Transportation (ODOT).

The company, Quattro Corporation, engaged in a conspiracy to submit quotes for traffic control devices, such as arrow boards and traffic cones, to the ODOT on behalf of itself, its related companies, and an unnamed co-conspirator. The multiple submissions would satisfy the ODOT’s requirements for number of quotes, and create the appearance of a competitive process, while ensuring that Quattro’s bid would succeed.

Quattro pleaded guilty to one count of entering into an unlawful combination, contract, or agreement with the intent to limit or fix the price of traffic control systems, a fifth-degree felony, and one count of attempting to engage in a pattern of corrupt activity, a third-degree felony. The company’s sales manager, Timothy O'Brien, pleaded guilty to three counts of engaging in a conspiracy against trade, first-degree misdemeanors.

Quattro’s plea agreement requires it to pay $32,796 in restitution to the harmed public entities and $10,000 to the State of Ohio. O’Brien’s plea agreement requires him to pay $4,372 in restitution and $1,500 to the State of Ohio. Both agreements require continued cooperation with the state’s investigation.

"Ohioans deserve a competitive marketplace that helps government make their tax dollars work as hard as possible, rather than lining the pockets of unscrupulous vendors," Attorney General Mike DeWine said in a press release announcing the guilty pleas. "This case makes it clear that we will take action against anyone who plots against the competitive process in this state."

"We take such cases seriously and will continue to work with other agencies to pursue those who try to get around the rules and cost taxpayers extra money," said Hamilton County Prosecutor Joseph T. Deters.

According to the Ohio Attorney General’s Office, the case represents the first criminal antitrust charges brought under the Valentine Act in almost three decades.

News: Antitrust