Michigan Bid Rigging Scandal Exposes Deep Corruption: 6 Charged in $8.1M Scheme

Former president of Pontiac asphalt company sentenced in growing antitrust case exposing corruption in Michigan infrastructure contracts.

Michigan Bid Rigging Scandal Exposed Corruption in Michigan Infrasstructure

Timothy Baugher, former president of Asphalt Specialists LLC (ASI), has been sentenced to six months in prison and fined $20,000 for conspiring to rig bids on asphalt paving contracts across Michigan in what is now known as the Michigan bid rigging scandal. The sentence, handed down on April 16, 2025, in federal court, is part of a sweeping antitrust investigation that has so far implicated multiple individuals and companies in fraudulent business practices impacting public infrastructure projects.

Federal prosecutors revealed that Baugher worked with executives from F. Allied Construction Company Inc. (Allied) and other employees to coordinate bids from July 2017 through May 2021. By agreeing in advance which company would submit the winning bid and which would submit intentionally inflated bids, the scheme created the illusion of a competitive bidding process — deceiving municipalities and taxpayers statewide.

The investigation, led by the Department of Justice’s Antitrust Division, is ongoing and has already resulted in over $8.1 million in criminal fines and seven individual charges.

Michigan bid rigging scandal highlights systemic weaknesses in public contracting

Baugher’s conviction is just one outcome in a broader legal crackdown on anti-competitive practices in Michigan’s construction industry. His former company, ASI, was fined $6.5 million in August 2024, while Allied and two of its executives entered guilty pleas in August 2023.

The Justice Department emphasized the seriousness of the charges, noting the impact such collusion has on public trust and financial integrity. “There is nothing impressive, just, or indeed lawful about rigging bids with your competitors,” said Omeed A. Assefi, Acting Deputy Assistant Attorney General for the Antitrust Division. He added that white-collar criminals often mistakenly assume they will receive lighter punishment than others — a perception this case challenges.

How bid rigging scams harm local communities and taxpayers

Bid rigging artificially inflates project costs by removing true competition. Experts say this siphons taxpayer money away from communities and slows infrastructure progress.

In Michigan, a state already grappling with deteriorating roadways and tight public works budgets, these actions have a direct, visible impact. Local governments operating on thin margins may struggle to complete critical maintenance projects when costs are driven up by dishonest business practices.

Sentencing sends signal, but deeper scrutiny of industry practices needed

While Baugher’s prison sentence marks a significant step in accountability, watchdogs argue that such penalties must be coupled with broader reforms.

“Until we create real disincentives, including debarment and transparency reforms, bid rigging will continue to flourish in sectors where oversight is lax,” said Michael Kohn, a whistleblower attorney and board member of the National Whistleblower Center.

The Department of Justice has encouraged individuals with knowledge of similar schemes to report violations to its Antitrust Division. The agency’s efforts, assisted by Inspectors General from the U.S. Department of Transportation and U.S. Postal Service, are likely to uncover further misconduct in the coming months.

Michigan companies and leaders on alert as crackdown continues

With three companies and seven individuals already charged, the investigation remains active. Industry insiders are watching closely, as federal enforcement could bring more charges or expand to other sectors where public contracts are involved.

Michigan’s infrastructure sector, long plagued by underfunding and maintenance backlogs, now faces a reckoning over ethics and transparency. As sentencing continues, public pressure for reform is expected to intensify.

Sources

U.S. Department of Justice – Official Press Release on Sentencing (April 16, 2025)
Former President of Asphalt Paving Company Receives Prison Sentence for Bid Rigging

Corporate Rap Sheets – Corporate Research Project of Good Jobs First
Dossiers summarizing significant corporate misconduct, authored by Philip Mattera

Michael D. Kohn – National Whistleblower Center Profile
Biography and professional background of Michael D. Kohn, President of NWC

Antitrust Division’s Complaint Center – U.S. Department of Justice
How to report antitrust violations

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