Two companies entered guilty pleas on Wednesday in connection with a multi-million-dollar bid-rigging scheme for insulation contracts.
BC Flynn Contracting Corp., based in Oxford, and Axion Specialty Contracting LLC, based in Foxborough, Mass., pleaded guilty in U.S. District Court in Bridgeport.
The companies are the sixth and seventh defendants to plead guilty in the case to date. Four individuals and one company previously pleaded guilty in 2019 and 2020.
According to the U.S. Attorney’s office, the companies admitted conspiring among themselves and other companies and individuals to rig bids on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals and other public and private entities in Connecticut.
BC Flynn’s website shows it has worked on projects for Yale University, the University of Connecticut, Yale Cancer Center, Pfizer, Verizon and Whole Foods, for example.
Investigators say the conspiracy lasted from 2011 through 2018. The co-conspirators allegedly discussed and agreed on bid amounts to inflate prices and profits.
The companies face potentially hefty fines and restitution orders. Sentencing is scheduled for Nov. 4.
Connecticut U.S. Attorney Vanessa Roberts Avery said the scheme victimized hospitals, universities and businesses throughout the state.
“The perpetrators submitted collusive bids and shared bid numbers with their competitors in an illegal effort to improve their companies’ bottom lines,” she said.
Special Agent in Charge David Sundberg of the FBI New Haven Field Office said the FBI is committed to investigating antitrust and fraud crimes.
These crimes “corruptly limit competition in the construction sector,” Sundberg said.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
