A federal jury in Oklahoma City convicted Sioux Erosion Control, its part-owner and vice president, and another employee for participating in a five-year price-fixing conspiracy targeting over $100 million in publicly funded transportation construction contracts across Oklahoma.
According to court documents and evidence presented at trial, Sioux, its part-owner and vice-president BG Dale Biscoe, and its employee Randall David Shelton conspired with their competitors in the erosion control industry to raise and maintain prices for products and services between September 2017 and April 2023.
Erosion control products and services, including sod, control runoff of soil or rock on highway construction and repair projects.
In addition to conspiring to raise sod prices, the defendants also agreed to allocate contracts across different areas of Oklahoma and rigged bids for projects by submitting intentionally high-priced bids or refusing to bid.
During the investigation, prosecutors charged six individuals and one company—including Biscoe, Shelton, and Sioux—for their participation in the scheme.
Four other individuals—Stanley Mark Smith, Roy Henry Henrich, Ryan Ashley Sullivan, and James Travis Feazel—previously pleaded guilty for their roles in the charged conspiracy and are awaiting sentencing.
The federal jury convicted the trio of participating in a price-fixing conspiracy. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine.
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.