East Haven businessman Thomas F. Langan, co-owner of Langan Insulation of North Haven, along with his company, pleaded guilty Tuesday, February 4, in federal court for scheming to “rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, bringing the total to five convictions in this ongoing investigation,” the Department of Justice (DOJ) announced.
According to court documents, from October 2011 until March 2018, Langan Insulation and owner Langan conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut.
The conspirators discussed prices and agreed on bids that inflated prices to their customers by approximately 10%. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using phones for which the registration masked the identity of the users and an encrypted disappearing messaging app.
According to the DOJ, the antitrust charge announced Tuesday carries a maximum penalty of 10 years in prison and a criminal fine of US$1 million for individuals, and a criminal fine of US$100 million for corporations. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a criminal fine of US$250,000 for individuals, and a criminal fine of US$500,000 for organizations.
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