Victor A. Garrido, owner of TranscendBS LLC and former business manager for the New York City Department of Education (NYC DOE), was sentenced to six months in prison for his role in a bid rigging scheme involving contracts with public schools. In addition to the prison term, Garrido and his company were ordered to pay $141,511 in restitution to NYC DOE.
Garrido pleaded guilty on March 19 to manipulating bids submitted to NYC DOE from at least November 2020 through January 2023. He also admitted to fraudulently obtaining over $20,000 in COVID-19 relief unemployment benefits and failing to file or pay federal or state income taxes for himself or his company between 2020 and 2023.
“The Defendant stole money from public school students, and taxpayers more generally, all for his own selfish gain,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The Antitrust Division and its PCSF partners will aggressively prosecute and hold accountable those who defraud American students and the American taxpayer.”
“Let today’s sentence be a warning to those who attempt to cheat the system. You will be held accountable,” said FBI Operations Director Chad Yarbrough of the Criminal Cyber Branch. “The FBI has zero tolerance for those who attempt to rig the system to benefit themselves, inflicting lasting harm on our communities and undermining the principles of fair competition.”
“Bid-rigging with school contracts is thoroughly unacceptable, as it deprives the school district of vital funds and students of a supportive learning environment — and it is a crime that SCI will continue to tirelessly root out,” said Special Commissioner of Investigation Anatasia Coleman of the Office of the Special Commissioner of Investigation for the NYC School District. “SCI is grateful for its continued partnership with the DOJ Antitrust Division and the FBI in bringing this case to justice.”
“Victor Garrido defrauded the New York State Department of Labor by illegally obtaining pandemic-related unemployment insurance benefits. This sentencing underscores the U.S. Department of Labor, Office of Inspector General's unwavering commitment to safeguard the American workplace from fraud and corruption,” said Special Agent in Charge Jonathan Mellone of the U.S. Department of Labor, Office of Inspector General Northeast Region. “We will continue to work closely with our law enforcement partners to hold accountable those who engage in these criminal activities within our jurisdiction”
Court documents show that after leaving his position at NYC DOE where he provided budget guidance, Garrido started TranscendBS LLC as a consultant offering similar services. The scheme involved submitting false bids alongside artificially high competitor bids so that TranscendBS would appear as the lowest bidder on consulting contracts with city schools. These competitor companies did not actually provide any services. Additionally, Garrido set prices just below thresholds that would have triggered further review by procurement officials.
Garrido was also ordered by the court to pay $23,100 in restitution related to unemployment benefit fraud committed against New York State Department of Labor.
The case was prosecuted by attorneys from the Antitrust Division’s New York Office with support from investigators at several agencies including: The Office of Special Commissioner of Investigation for NYC School District; Federal Bureau of Investigation; and U.S. Department of Labor’s Office of Inspector General.
In November 2019, the Justice Department established [the Procurement Collusion Strike Force (PCSF)](https://www.justice.gov/procurement-collusion-strike-force) as an initiative aimed at combating antitrust crimes affecting government procurement across all levels—federal, state, and local governments.
Anyone wishing to report information about bid rigging or other anticompetitive practices related to government spending can contact PCSF through their official website linked above.
