(Des Moines)– The Iowa Attorney General’s Office says a northwest Iowa concrete company that pleaded guilty to federal felony charges of conspiring to manipulate prices has agreed to pay the state $145,000 in exchange for the state dropping a one-year ban on government business.
In May, 2011 GCC Alliance Concrete, Incorporated of Orange City pleaded guilty in U.S. District Court for the Northern District of Iowa to taking part in three conspiracies to fix prices and/or rig bids. GCC was sentenced in March of this year to 18 months’ probation and was fined $100,000 for the three felony counts under the Sherman Act.
Under Iowa law, a contractor or supplier convicted of violating state or federal competition law is automatically disqualified from any work for a governmental agency for one year. Iowa Department of Transportation rules allow the agency to disqualify a contractor for up to three years. Under the agreement, the Iowa Attorney General and the Iowa D.O.T have agreed to withdraw the ban and releases the company from any future claims connected to the criminal case and related class-action case. The company in exchange will pay the state $145,000 and will provide anti-trust training to its Iowa employees who determine prices or participate in bids.
According to the U.S. Department of Justice, GCC Alliance Concrete participated in conspiracies through its former sales manager, Steven VandeBrake, in which engaged in discussions concerning project bids for ready-mix concrete sales, submitted rigged bids at collusive and noncompetitive prices to customers, and accepted payment for sales of ready-mix concrete at predetermined prices. Court documents also say VandeBrake engaged in discussions and reached agreements regarding the prices on the conspirators’ annual price lists for ready-mix concrete. VandeBrake pleaded guilty to participating in those conspiracies. He’s serving a four-year term in federal prison and must pay a criminal fine of $829,715.
