Gregg Wallick, the former president and chief executive officer of a commercial roofing company in Fort Lauderdale, Florida, has pleaded guilty to participating in a bid rigging conspiracy that targeted commercial roofing projects across the state. The plea was entered in the Southern District of Florida.
Court documents indicate that Wallick and his co-conspirators agreed on prices before submitting bids for various commercial roofing projects. In this scheme, some participants intentionally submitted higher bids to help others secure contracts at inflated prices. This conduct, known as “comp” or “cover” bidding, took place from at least September 2020 through February 2022 and resulted in Wallick’s company unlawfully obtaining more than $3.5 million.
“Bid rigging is cheating, plain and simple,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division. “The defendant’s bid rigging scheme was an unfair, illegal cheat code used against vulnerable customers who needed roofing services in a hurricane-prone area, and the Antitrust Division’s commitment to finding and prosecuting these schemes is unbreakable.”
Special Agent in Charge Brett Skiles of the FBI Miami Field Office commented: “Wallick’s actions illegally drove up the costs of commercial roofing projects by turning the multiple bid process on its head. Instead of providing truly competitive bids on roofing projects to prospective customers, he and his co-conspirators presented intentionally higher bids in a scheme to line their pockets with ill-gotten gains. This anti-competitive conduct is unacceptable and illegal. We encourage people who may be victims of such schemes to report this information to the FBI immediately.”
Wallick pleaded guilty to one felony count under Section 1 of the Sherman Act for conspiring to restrain trade by rigging bids. Individuals convicted under this statute face up to 10 years in prison and a criminal fine up to $1 million.
A sentencing date has not yet been set; any sentence will be determined by a federal district court judge after considering relevant guidelines and statutory factors.
The Justice Department’s Procurement Collusion Strike Force (PCSF) coordinates efforts among law enforcement agencies to address antitrust violations related to government procurement at all levels nationwide. More information about PCSF initiatives or reporting suspected collusion can be found at https://www.justice.gov/procurement-collusion-strike-force.
Whistleblowers who provide original information leading to recoveries or criminal fines over $1 million may qualify for rewards ranging from 15% to 30% of collected funds through the Antitrust Whistleblower Rewards Program. Details about eligibility requirements are available at https://www.justice.gov/atr/whistleblower-rewards.
