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Writer's pictureStephen Wick

Executives Sentenced for Price-Fixing Scheme in Savannah Concrete Market

A corporation along with four of its executives received sentences for their involvement in an extensive scheme to manipulate prices, coordinate bids, and distribute jobs related to ready-mix concrete in the greater Savannah, Georgia region.

In a significant crackdown on corruption, four executives and their company, Evans Concrete LLC, have been sentenced for their involvement in a long-term conspiracy to fix prices and rig bids for ready-mix concrete in the greater Savannah, Georgia area.


The individuals—James Clayton Pedrick, Gregory Hall Melton, John David Melton, and Timothy “Bo” Strickland—were charged in September 2020 for their roles in manipulating the concrete market for residential, commercial, and public projects. While Pedrick, Strickland, and Evans Concrete pleaded guilty, Gregory and John David Melton were found guilty by a jury earlier this year.


“These sentences reflect the egregious nature of rigging bids for materials like ready-mix concrete which are essential to the American economy,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will hold accountable those who seek to exploit the critical need for these materials to harm consumers.”


“Concrete is an essential material in construction projects, with prices set in the free market by the forces of supply and demand,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “However, the defendants in this case for several years illegally rigged the system to benefit themselves at the expense of customers and are being held accountable for their conduct.”

Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.


In court today, Gregory Hall Melton received a 41-month prison sentence, along with three years of supervised release and a $50,000 fine. John David Melton was sentenced to 26 months in prison, three years of supervised release, and a $10,000 fine. Previously, Strickland was sentenced to five months in prison and a $150,000 fine, while Pedrick received one year of probation, and Evans Concrete was fined $2.7 million. Additionally, Argos USA LLC paid a $20 million criminal penalty as part of a deferred prosecution agreement.


Gregory Melton was the division manager of ready-mix concrete sales for Argos’ local sales office in Pooler, Georgia. Pedrick was a cement salesperson, selling cement to ready-mix concrete suppliers.

Court documents revealed that the defendants coordinated price increases, allocated jobs, and submitted noncompetitive bids to customers. This conspiracy, which began around 2010, persisted until July 2016, significantly impacting the local construction market.


“Activities related to bid-rigging and collusion do not promote an environment conducive to open competition which harms the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of U.S. Postal Service's Office of Inspector General (USPS OIG). “The sentencing in this case represents a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served."




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