Four defendants, including two consulting companies and their owners, have pleaded guilty to participating in a bid rigging scheme that involved budget and procurement consulting services for New York City Public Schools. The pleas were entered in the U.S. District Court for the Southern District of New York.
Transcend BS LLC (Transcend) and its owner, Victor A. Garrido from Peekskill, New York, along with Clark & Garner LLC (C&G) and its owner, Donald Clark Garner II from Brooklyn, New York, admitted to violating Section 1 of the Sherman Act on March 19 and 20.
"Defendants targeted the nation’s largest school system with their scheme," said Daniel Glad, Director of the Procurement Collusion Strike Force at the Justice Department’s Antitrust Division. "The Antitrust Division and its PCSF partners remain steadfast in our commitment to root out fraud."
Court documents reveal that between November 2020 and January 2023, Garrido and his co-conspirators submitted artificially high competitor bids to ensure Transcend appeared as the lowest bidder for contracts. This maneuver circumvented the NYC Department of Education's competitive bidding requirement. As a result, more than $707,000 in work orders were affected with estimated losses of $141,511 incurred by NYC DOE.
Before forming their respective companies, both Garrido and Garner had been employed by NYC Public Schools. They have agreed to pay restitution for unemployment benefits they improperly received.
"Victor Garrido and Donald Clark Garner admitted their guilt," stated Leslie Backshies from the FBI New York Field Office. "Garrido and Garner will now rightly face justice."
Jonathan Mellone from the U.S. Department of Labor emphasized: "These guilty pleas underscore...commitment to safeguard the American workplace from corruption."
Penalties for individuals found guilty of bid rigging can include up to 10 years in prison and a $1 million fine. Corporations could face fines up to $100 million or twice the gain or loss resulting from their crimes.
The case is being prosecuted by the Antitrust Division’s New York Office with support from several law enforcement agencies including FBI's New York Field Office.
For those with information about this or other procurement fraud schemes are encouraged to contact PCSF via www.justice.gov/atr/webform/pcsf-citizen-complaint.
