David A. Coppola, a senior executive from a Michigan-based asphalt paving company, has pleaded guilty to his involvement in two separate bid-rigging conspiracies for public asphalt paving services contracts. As the vice president of Al’s Asphalt Paving Company Inc., Coppola’s guilty plea is part of an ongoing investigation by the U.S. Department of Justice (DOJ) into collusion within the Michigan asphalt paving industry.
Background of the Case
Court documents indicate that David A. Coppola’s actions took place over several years. He was involved in two distinct conspiracies to manipulate bids, starting in March 2013 and continuing through June 2019. These conspiracies involved coordination with competitors in the asphalt paving industry, specifically Asphalt Specialists LLC (ASI) and F. Allied Construction Company Inc. (Allied), along with other employees from these companies.
The purpose of these conspiracies was to rig bids for public and private asphalt paving contracts by pre-determining which company would win specific contracts. The losing companies submitted non-competitive bids, creating a false appearance of competition while ensuring that contracts went to the predetermined company. Coppola participated in the bid coordination process, undermining fair competition.
Details of David A. Coppola’s Guilty Plea
David A. Coppola pleaded guilty to two counts of violating Section One of the Sherman Act, a U.S. antitrust law that prohibits businesses from engaging in anti-competitive practices such as price-fixing and bid-rigging. These violations can carry significant penalties, including up to 10 years in prison and a fine of $1 million. Under certain circumstances, the fine can be increased to twice the amount gained by the crime or twice the amount lost by victims, whichever is greater.
The federal district court judge will determine Coppola’s final sentence based on the U.S. Sentencing Guidelines and other statutory factors.
Related Convictions
Coppola’s guilty plea is part of a larger, ongoing investigation into bid rigging and other anti-competitive conduct within the Michigan asphalt paving industry. His employer, Al’s Asphalt, and the company’s president both pleaded guilty earlier this year in January 2023. The company was ordered to pay a fine of $795,661.31 in July 2023 as part of their sentencing.
Additionally, other companies and executives involved in these schemes have already faced legal action. In 2023, Allied Construction and two of its executives pleaded guilty to similar charges, as did ASI and two of its former executives. David A. Coppola’s guilty plea is the ninth obtained by the DOJ’s Antitrust Division in connection with the Michigan asphalt paving bid-rigging case.
Bid Rigging Conspiracies
The two conspiracies in which David A. Coppola was involved operated over a period of several years. The first conspiracy, involving ASI, lasted from March 2013 through November 2018. The second conspiracy, involving Allied, spanned from June 2013 through June 2019.
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The central activity in these conspiracies was the coordination of bid prices. The co-conspirators agreed to submit pre-determined bids for various asphalt paving contracts, ensuring that the company chosen in advance by the group would win the contract. The other companies would submit deliberately higher bids or otherwise non-competitive proposals, making the process appear legitimate while limiting actual competition.
This practice directly violates Section One of the Sherman Act, which is designed to maintain competitive markets by preventing agreements that restrain trade. Bid rigging is prohibited because it deprives customers—whether private businesses or public entities—of the benefits of competitive pricing and quality work.
Investigating Agencies
The investigation into the Michigan asphalt paving industry’s anti-competitive practices has been led by the DOJ’s Antitrust Division, specifically its Chicago Office. The investigation is part of an ongoing operation aimed at identifying and prosecuting individuals and companies involved in bid rigging and other anti-competitive practices in various industries.
In addition to the Antitrust Division, other government agencies have been involved in this case. The Department of Transportation Office of Inspector General (DOT OIG) and the U.S. Postal Service Office of Inspector General (USPS OIG) have both contributed to the investigation. Both agencies have a mandate to ensure that public contracts are awarded fairly and that taxpayers are not defrauded through illegal collusion or bid-rigging schemes.
Sentencing and Legal Proceedings
As part of his guilty plea, David A. Coppola acknowledged his role in violating the Sherman Act through his participation in the bid-rigging schemes. The date of his sentencing has not yet been determined. When sentencing occurs, the court will consider the U.S. Sentencing Guidelines, which take into account the severity of the crime, the financial impact on victims, and any cooperation with investigators.
David A. Coppola faces potential penalties that include a maximum sentence of 10 years in prison and a $1 million fine. The court also has the option of imposing a higher fine if the financial impact of the crime on victims is deemed to exceed the statutory maximum fine.
Ongoing Investigation
The DOJ’s Antitrust Division continues to investigate bid-rigging and other anti-competitive conduct in the Michigan asphalt paving industry. The investigation has already resulted in multiple guilty pleas, fines, and other penalties. The division has stated that it will continue to pursue those responsible for undermining competition in public and private contracts.
