A federal judge has sentenced Daniel Israel, former president and co-founder of Asphalt Specialists Inc. (ASI), to six months in prison for his role in a $22 million bid-rigging conspiracy.
On Thursday, U.S. District Judge Gershwin A. Drain handed down the sentence, emphasizing the need for prison time to deter white-collar crime and protect fair market competition. In addition to the prison term, Israel was ordered to pay a $500,000 fine.
Israel, 63, pled guilty in October 2023 to violating the Sherman Act after prosecutors revealed a multi-year scheme involving ASI, Al’s Asphalt Paving Company Inc., and F. Allied Construction Company Inc. The companies conspired to rig bids on asphalt paving contracts in Michigan, securing roughly $22 million in unlawfully obtained contracts over six years.
Judge Drain rejected Israel’s request for probation, stating that a lenient sentence would undermine efforts to prevent bid-rigging and other white-collar crimes.
“If I was real lenient, that wouldn’t deter anybody from bid-rigging. People would think they can get away with it,” said Judge Drain.
Israel expressed remorse during sentencing, describing his feelings as “humiliated” and “ashamed” but claimed he was unaware the conduct was illegal.
The sentence represents a downward departure from the government’s recommended nine months in prison, while the imposed fine exceeded the government’s $250,000 recommendation, reflecting the judge’s view of Israel’s financial resources.
This case follows the earlier sentencing of other ASI executives and companies involved in the scheme, including a $6.5 million fine against ASI itself and prison time for a former ASI executive. The Department of Justice continues to pursue accountability in cases of anti-competitive behavior affecting markets and consumers.
The prosecution was led by Allison Gorsuch and Ruben Martinez from the DOJ’s Antitrust Division. Daniel Israel was defended by Walter Piszczatowski of Hertz Schram PC.
Case Reference: United States of America v. Israel, Case No. 2:23-cr-20538, U.S. District Court, Eastern District of Michigan.
