Court documents reveal that between 2015 and 2022, including the period following Hurricanes Irma and Maria in September 2017, Sola colluded with other industry players to fix prices of steel products, including rebar.
Edgardo Sola Colon, president of a prominent steel distribution company in Puerto Rico, has admitted to conspiring with rival firms to manipulate prices for reinforcing bar (rebar), a crucial material for construction. The plea was entered today in the U.S. District Court in San Juan.
Sola, a resident of Toa Alta, Puerto Rico, also previously led another major steel distributor on the island. His company, along with two competitors, dominated about 70% of the wholesale rebar market in Puerto Rico, where rebar is essential for both residential and commercial building projects. The majority of rebar used in Puerto Rico is imported from abroad or from the U.S. mainland.
Court documents reveal that between 2015 and 2022, including the period following Hurricanes Irma and Maria in September 2017, Sola colluded with other industry players to fix prices of steel products, including rebar. This conspiracy led to inflated prices for hardware stores, construction contractors, and other buyers in Puerto Rico. Evidence includes WhatsApp messages in which Sola and competitors coordinated pricing strategies. In one instance from December 2020, Sola shared rebar pricing details with Juan Carlos Aponte, an executive at a rival firm, and they confirmed their agreement on price points.
In his plea agreement, Sola acknowledged that the conspiracy impacted over $50 million in sales by his companies. Aponte, who also pleaded guilty to the same charges on August 7, is awaiting sentencing.
“In pleading guilty, this defendant admitted to a long-running agreement to fix prices on rebar, a critical component of the construction supply chain for Puerto Rico,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “This guilty plea demonstrates the Antitrust Division’s continued commitment to holding accountable individuals who collude to raise prices and harm all consumers and businesses in Puerto Rico. We and our law enforcement partners will continue to prosecute the people responsible for anticompetitive criminal conduct like this.”
Violating the Sherman Act, which governs federal antitrust laws, is a serious offense carrying a maximum penalty of 10 years in prison and a $1 million fine for individuals. Corporations can face fines up to $100 million, potentially increased based on the financial gain from the crime or the loss incurred by victims.
Sola is scheduled for sentencing on December 16. The court will decide his sentence based on federal sentencing guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal Section, with assistance from the FBI San Juan Field Office, led the investigation. The case is being prosecuted by Trial Attorneys April Ayers-Perez, Alison Friberg, and Taylor Bernhardt, alongside Senior Litigation Counsel John Davis.
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