Five Defendants Plead Guilty for Bid Rigging Conspiracies on Commercial Roofing Projects in Central Florida

Source: United States Department of Justice

As part of an ongoing investigation, four individuals and one company have pleaded guilty for their roles in bid-rigging conspiracies throughout central Florida.

Glenn Bailey and Douglas Sutter each pleaded guilty in the Middle District of Florida to participating in a conspiracy to suppress and eliminate competition by rigging bids on commercial roofing projects in violation of the Sherman Act on Jan. 8 and 9, respectively. Kenneth Cody and Christopher Rakos also pleaded guilty to the same crime on Oct. 3 and Dec. 6, 2024, respectively. Service Works of Fort Lauderdale LLC, also pleaded guilty to the same crime on Oct. 3, 2024, and was sentenced on Jan. 6.

According to the plea agreements, each of the defendants knowingly entered into a conspiracy to restrain trade by rigging bids for commercial roofing services in the Middle District of Florida. The commercial roofing services included the installation and repair of flat and sloped roofs on commercial and other facilities. The rigged bids impacted a variety of projects, including roofing services for schools, religious buildings, condominiums and retail stores.

“Safe, affordable roofing is critical to Florida communities that are prone to hurricanes and other harsh weather conditions,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “The guilty pleas secured today further demonstrate our commitment to protecting the competitive bidding process that is essential to constructing and maintaining America’s infrastructure.”

“These individuals thought they could game the system and would not get caught. They were wrong,” said Acting Special Agent in Charge John Carlo of the Department of Education Office of Inspector General (OIG)’s Eastern Regional Office. “The OIG will continue to work with our law enforcement partners to aggressively pursue those who misappropriate education funds for their own selfish purposes. America’s taxpayers and students deserve nothing less.”

The FBI and Department of Education OIG are investigating the case.

Trial Attorneys Daniel A. Loveland Jr., Ronald P. Fiorillo II., Vijay N. Rao and Sumaiya F. Ismail of the Justice Department’s Antitrust Division are prosecuting the case.

Anyone with information on bid rigging, price fixing, market allocation or other anticompetitive conduct in the roofing should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.

Matthew W. Cheney Appointed as Acting U.S. Trustee for Maryland, South Carolina, Virginia, West Virginia and the District of Columbia

Source: United States Department of Justice

Matthew W. Cheney has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Maryland, South Carolina, Virginia, West Virginia and the District of Columbia (Region 4) effective Jan. 11. Cheney replaces Gerard R. Vetter, who continues to serve as the Assistant U.S. Trustee for the Baltimore office of the U.S. Trustee Program (USTP).

Cheney joined the USTP in 2015 as the Assistant U.S. Trustee for the office in Grand Rapids, Michigan, and will remain in that role while overseeing Region 4. He is co-chair of the USTP’s Quarterly Fees Working Group, which develops guidance for the USTP’s collection of quarterly fees in chapter 11 bankruptcy cases and provides support for litigation involving chapter 11 fee issues. He also serves the Program as a member of the Data Integrity Group, which monitors the accuracy and integrity of the USTP’s information collection systems. Previously, as an attorney in private practice in Washington, D.C., and Baltimore, Cheney represented clients including a private chapter 7 trustee and creditors in complex bankruptcy cases and other litigation.

Cheney received a bachelor’s degree in social science from Michigan State University and a law degree from Ohio Northern University, where he was managing editor of the law review. After law school, Cheney clerked for Judges E. Stephen Derby and James F. Schneider of the U.S. Bankruptcy Court for the District of Maryland.

The Executive Office for U.S. Trustees made the announcement.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.  

Defense News: SECNAV Del Toro Names Future Amphibious Transport Dock the Future USS Travis Manion (LPD 33)

Source: United States Navy

The future USS Travis Manion honors Silver Star recipient, 1st Lieutenant Travis Manion and
his service. The future LPD 33 will be the first Navy vessel named for Travis Manion.

“The San Antonio-class amphibious ship represents the combined power of the Navy and
Marine Corps team and relies on the seamless integration of Sailors and Marines working
together,” said Del Toro. “Here, at his alma mater, I am proud to announce that the next San
Antonio-class amphibious transport dock, LPD 33, will be named USS Travis Manion, serving
as a symbol of courage, bravery, and selfless service for all who follow in her wake.”

Born to a Marine family, Manion graduated from the United States Naval Academy in
2004. After completion of entry-level officer training, he was assigned to 1st Reconnaissance
Battalion and deployed to Iraq for his first tour of duty. In 2006, he was assigned to a military
transition team advising the Iraqi Army and returned to Iraq in December that year.

 On patrol in April 2007, Manion and his fellow Marines were ambushed. With his corpsman
wounded, Manion exposed himself to enemy fire to recover the corpsman. Attacking the
ambushers, Manion again moved through enemy fire to rescue another wounded Marine. With
Iraqi reinforcements blocked, Manion again exposed himself to fire in attempt to find a better
fighting position. He was fatally wounded by an enemy sniper. For his actions, he was awarded a
Silver Star.

Manion Hall, a student barracks at The Basic School aboard Marine Corps Base Quantico,
Virginia, is named in his honor. This is the first ship to be named after 1st Lieutenant Manion. 

“The naming of this ship, the USS Travis Manion, is an incredible honor for Travis and our
family, and an honor for all of those who stepped up to serve when our country called after September 11, 2001,” said Col. Thomas Manion, USMC, (Ret.) and Chairman Emeritus, Travis
Manion Foundation. “Through the words he spoke before his final deployment, ‘If Not Me, Then
Who…’, Travis left a legacy of service that lives on through the hundreds of thousands of
veterans and families of the fallen across the country who share this ethos. Today, as our men and women continue to serve on the front lines, I know Travis would want this ship to be a tribute to
this entire generation of veterans and a reminder to honor and remember their service and
sacrifice.”

Along with the ship’s name, Secretary Del Toro announced the sponsors for the USS Travis
Manion as sister, Ryan Manion, and nieces Maggie and Honor Borek. They, in their role as
sponsors, will represent a lifelong relationship with the ship and crew.

“I never would have thought when we lost my brother Travis in 2007 that I – alongside Travis’
nieces, Maggie and Honor – would one day serve as sponsors of a ship named after him,” said
Ryan Manion, CEO of Travis Manion Foundation. “Travis would be so proud to know that the
USS Travis Manion will one day carry Marines – men and women like those he walked beside in
the halls of Naval Academy and those he served beside on the battlefield. He’d also be adamant
that this honor is not only about him, but about remembering the legacies of all of those who
wore the uniform.”

Amphibious transport dock ships are warships that embark, transport and land elements of a
landing force for a variety of expeditionary warfare missions. LPDs are used to transport and
land Marines, their equipment, and supplies by embarked Landing Craft Air Cushion (LCAC) or
conventional landing craft and amphibious assault vehicles (AAV) augmented by helicopters or vertical take-off and landing aircraft (MV 22). These ships support amphibious assault, special
operations, or expeditionary warfare missions and serve as secondary aviation platforms for
amphibious operations.

Former President of Asphalt Paving Company Pleads Guilty to Bid Rigging

Source: United States Department of Justice Criminal Division

The former president of a Michigan asphalt paving company pleaded guilty Wednesday for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan.

According to court documents filed in the U.S. District Court for the Eastern District of Michigan, Timothy Baugher, former president of Pontiac-based Asphalt Specialists LLC (ASI), conspired with F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor. Baugher participated in the conspiracy from July 2017 through May 2021.

Wednesday’s guilty plea is the 10th in the Antitrust Division’s ongoing investigation into collusion in the Michigan asphalt paving industry. Baugher’s former employer, ASI, and another former ASI executive also pleaded guilty for their participation in the conspiracy with Allied in January 2024. Allied and two of its executives previously pleaded guilty in August 2023 for their participation in the conspiracy. On Aug. 15, 2024, ASI was sentenced to pay a fine of $6,500,000.

Under the terms of the conspiracy, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators already had decided among themselves who would win the contracts.

“Americans deserve to pay a fair, competitive price to fix transportation infrastructure,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will continue to hold accountable executives who cheat consumers by undermining the competitive process.”

“Fair and open marketplace competition is essential in providing consumers and taxpayers the integrity expected in procuring contracts funded with public dollars” said Special Agent in Charge Anthony Licari of the Department of Transportation’s Office of Inspector General, Midwestern Region. “Corporate executives who collude to fixing prices and rigging bids will be held accountable.”

“Activities related to bid-rigging and collusion do not promote an environment conducive to open competition which harms the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service Office of Inspector General. “The guilty plea in this case represents a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served.”

Baugher pleaded guilty to one count of violating Section 1 of the Sherman Act. He faces a maximum penalty of 10 years in prison and a $1 million criminal fine for the charge. The maximum penalty for corporations is a $100 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 sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Wednesday’s guilty plea resulted from an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry being conducted by the Antitrust Division’s Chicago Office and the Offices of Inspectors General for the U.S. Department of Transportation and U.S. Postal Service.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.

Deputy Attorney General Lisa Monaco Delivers Remarks at ATF Director Steve Dettelbach’s Farewell Event

Source: United States Department of Justice

Remarks as Prepared for Delivery

Thank you, Chelsea, for that generous introduction.

I want to start by recognizing Steve’s family here today — with a special thanks to his wife Karil — and children Allie and David.

Steve’s service is also your service — and I am grateful for the sacrifices your family has made these past years so Steve could lead ATF — including the many weeks he shuttled between Washington and Ohio.  

Thank you, all of you.

Now, it’s great to be here to honor Steve Dettelbach — a towering figure in the Department — and not just because he’s the tallest component head.

A certain word comes to mind when I think of Steve: boundless.

Boundless energy — starting most days before sunrise and ending deep into the night.

Boundless optimism — a can-do attitude, never to be tamped down by, well, anyone.

And boundless leadership — always pushing the envelope, going the extra mile, encouraging staff to generate new and innovative ideas — perhaps to their chagrin but for the enduring benefit of our communities.

Now, despite our differences in height, Director Dettelbach and I often saw eye to eye.

And that’s because we agree on an essential premise about ATF’s work, one that all of you hear day in and day out from Steve: “Everything we do at ATF begins and ends with public safety.”

I have witnessed that mantra in action every day of Steve’s service and that of the incredible leadership team he put together.

And as the first Senate-confirmed ATF Director in a long, long time, he took that mandate and ran with it.

There are too many notable successes to list today — but allow me to highlight just a few of ATF’s accomplishments under Steve’s leadership.

He led ATF’s implementation of the Bipartisan Safer Communities Act — the most significant federal gun-safety legislation in over 30 years.

Putting that landmark bipartisan legislation into action has meant investigating and charging hundreds of defendants for firearms trafficking and straw-purchasing — keeping guns out of the hands of dangerous individuals.

Because of enhanced background checks for those under 21 established under the law, nearly 1,000 transactions have already been stopped — keeping guns out of the hands of dangerous individuals.

Because of ATF’s work and Steve’s leadership critical updates to regulations now make it harder for criminals and other prohibited persons to obtain untraceable “ghost guns” — and those “engaged-in-the-business of selling guns” must get a federal license and run background checks.

And on his watch, ATF cracked down on firearms smuggling by cartels and transnational criminal organizations.

Throughout it all Steve exhibited that boundless energy I spoke of at the outset — his nearly seven-foot frame literally bouncing on the balls of his feet as he talked excitedly and with pride about the work of the ATF.

Famously — none of this was easy — at all.

Now, ATF is no stranger to being in the bull’s eye – but no matter what, Steve never stopped working in good faith to reach across the aisle, to reach across borders, and to reach out to those with strongly held views of all kinds to find common ground — all in an effort to save lives.

He worked day and night as a fierce advocate for the women and men of ATF to prioritize investments in ATF’s people, its mission, and its unique role — together with its state and local partners – to protect our communities:

  • By relentlessly advocating for crime-gun intelligence, nearly doubling the number CGICs nationwide over the past four years.
  • By adding 139 NIBIN sites and growing the number of agencies contributing to the database — totaling more than 12,000 – a huge accomplishment; and
  • By increasing the number of law enforcement agencies authorized to access the eTrace application. Today, more than half of all law enforcement agencies can now use this critical tool.

Thanks to Steve — and Marvin before him — they made me an evangelist for crime gun intelligence — for one simple reason — it works!

It helps identify the most prolific trigger pullers and takes them off the street.

Steve has also led with great vision — championing innovation in ATF’s mission, especially by focusing on emerging threats.

Because of this vision, ATF led the charge to go after deadly machine gun conversion devices that turn run of the mill firearms into weapons of war.

He convened experts from our national labs, academia, and the 3-D printing industry to address the proliferation of these illegal machine guns devastating our communities.

While many of ATF’s accomplishments can be measured with stats and research — some are harder to see.

The loved one who made it home last night because a firearm dealer conducted a background check. 

The child who was safe at school today because ATF disrupted a gun trafficking network.

These victories are harder to count, but they are lived out by Americans every day.

Steve, because of your work — and that of the women and men of ATF — our communities are safer — and those who’ve been touched by gun violence — though there are far too many — have a place at the center of ATF’s work.

Steve’s and ATF’s dedication to public safety and the victims of gun violence is quite literally reflected at the center of this building — in the Faces of Gun Violence.

I was proud to participate in ATF’s Inaugural Gun Violence Survivors’ Summit — born of Steve’s commitment to supporting victims of gun violence, the the mothers, fathers, sons, daughters, — those in law enforcement who made the ultimate sacrifice.

In dedicating the Faces of Gun Violence Steve spoke of ATF’s dedication to “honoring the fallen and protecting the living.”

Steve has demonstrated that commitment time and again always there for those who run toward danger.

Always there at the ATF agent’s bedside invested in their recovery every step of the way.

Always there to comfort families of those who made the ultimate sacrifice.

Thank you for your leadership of this great organization, and its dedicated men and women.

Steve, your tireless efforts leave ATF, and the Justice Department, in a better place.

I am grateful for your partnership, your leadership, and for your friendship.

Thank you.