Waltham-based transportation company reaches $440,000 settlement for collusion accusations

Waltham-based transportation company JSC Transportation Services Inc. has reached a $440,000 settlement with the Massachusetts Attorney General’s Office following allegations of colluding with another company to raise contract prices.

The company, owned by former Waltham councilor at-large David H. Marcou Jr. and Derek Marcou, was accused of participating in anticompetitive collusion to raise prices on transportation contracts with the city of Lynn and the towns of Dedham and Saugus. JSC is also listed as a vendor on the Waltham Public School’s Student Transportation Services page.

According to a press release from the AG’s office, JSC is accused of having colluded with Beacon Mobility Corporation in 2022 to raise prices for special education student transportation contracts. The companies allegedly agreed not to submit competing bids, a process known as contract allocation. With its Saugus contract, JSC signed a certificate of non-collusion, which is  a false claim if they colluded with BMC. BMC reached a $2.4 million assurance of discontinuance settlement with the AG this July.

As part of the settlement, JSC agreed to an assurance of discontinuance, meaning the company promises to stop using the unethical business practices alleged by the AG’s office. As part of the assurance of discontinuance, the company must make a $440,000 payment, which will be distributed to the affected municipalities. JSC must maintain an antitrust compliance program for at least 5 years and notify the AG’s office if they acquire any other transportation companies during that period. JSC also agreed to cooperate with any further investigations and notify the AG’s office if any competitors try to allocate contracts in a similar way.

JSC is allowed to continue operating its business. A representative of JSC Transportation was reached by phone for comment but the person who answered said no one was available to comment.