Antitrust fraud in highway construction:

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Antitrust fraud in highway construction Convertin
g Statistics into Cases
Turner Bond Office of Inspector General,
Missouri Dept. of Transportation
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Converting Statistics into Cases

• Starting with Statistics

• Coming out of the Ivory Tower

• Developing your Cases

• Marketing your Cases

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Starting with Statistics

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Assign Markets
Northwest
I-70
Kansas City
Truman Reservoir
St. Louis - Iron Mt.
Jeff. City - Rolla
MARIES
Southern
Bootheel
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Market Shares show supra-competitive influences.
Kansas City Mkt. Normal Variation
87
88
89
90
91
92
93
94
95
96
97
98
Northeast Mkt. Unnaturally Even
58
54
53
51
51
51
50
47
44
42
40
36
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Highlight Problem Areas
Northeast
Northwest
I-70
Kansas City
Truman Reservoir
St. Louis-Iron Mt.
Jeff. City - Rolla
MARIES
Southern
Bootheel
Patterns to Analyze
Targeted Invest.
Monitor Patterns
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Overlay Territories

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Statistics and graphs arent enough
If I had a witness, what would I need you for?
ANTI-TRUST ANALYST My computer models indicate
collusion in the South. Will you investigate?
LAW ENFORCEMENT Sorry. I cant help you if you
dont have a witness.
Oh.

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Coming out of the Ivory Tower
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Look for the Underlying Mechanics

• Vertical Market Control the origin of our
  anti-trust laws.
• Losing Entity is a tax dodge or bidding signal
• Schill bidder just wants aggregate sales.
• Who knew what and when.

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Reality check your theories
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Broaden your Perspective

• Imbed yourself Talk with materials inspectors,
  field inspectors, testing staff.
• Network fraud investigators from other fields,
  DBE certifiers, municipal contracting agents, law
  enforcement, etc.
• Cross-train computer science, engineering,
  anti-trust law, economics, statistics, etc.

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Become your Departments Advocate for Competition

• Restructure contracts.

• Bring in competing industries.

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Developing Cases

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Bridging the gap between Statistics . . . .

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Use Case Profiling

• Summarize Case
• Scope of transactions
• Date of first awareness
• Theory of corruption
• Mechanics of the deal

• Assess Viability find 3 out of 4 markers
• Is there a definable system of exchange?
• Is the consumer damaged?
• Is there irrational business behavior?
• Is there a history of concern with these players?

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Create Briefing Books

• Generic, reusable, and short.
• Theory of the mechanics behind the deal.
• Potential contacts
• Injured competitors
• Disgruntled employees
• Attachments profiling current evidence

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Marketing Cases
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Market Your Cases

• Good ideas dont sell themselves.
• Develop contacts and keep them open.
• Send them usable information.
• Be persistent. If, at first you dont succeed

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Summary

• Start with Statistics

• Reality Check your Work

• Develop your Cases

• Market your Cases

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Profile Vendors

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Converting Statistics into Cases

• Starting with Statistics

• Coming out of the Ivory Tower

• Developing your Cases

• Marketing your Cases

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Developing Cases
Bridging the gap between Statistics . . . .

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Become your Departments Advocate for Competition

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Force Competition Where its Needed

• Restructure contracts.

• Bring in competing industries.