The former president and chief executive officer of a commercial roofing company pleaded guilty yesterday to a conspiracy to rig bids for commercial roofing projects in Florida. Gregg Wallick of Fort Lauderdale, Florida has pleaded guilty for his participation in a conspiracy to suppress and eliminate competition by rigging bids on commercial roofing projects in violation of Section 1 of the Sherman Act. According to documents filed in the Southern District of Florida, Wallick and his co-conspirators colluded before bidding on commercial roofing projects.
Background and Key Details
Wallick and his co-conspirators agreed on the prices they submitted to their customers, including which of the co-conspirators would submit an intentionally high bid to corruptly assist the other. This type of antitrust crime is known as a “comp” or “cover” bidding scheme. Wallick’s criminal conduct.
Moreover, began at least in or around September 2020 and lasted through at least in or around February 2022, affected a variety of commercial projects and resulted in his company illegally 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.
Meanwhile, the Antitrust Division’s commitment to finding and prosecuting these schemes is unbreakable”. “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,” said Special Agent in Charge Brett Skiles of the FBI Miami Field Office. “This anti-competitive conduct is unacceptable and illegal.
Enforcement Actions and Impact
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 of restraining trade by conspiring to rig bids, in violation of Section 1 of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. For complete details, refer to the official DOJ press release.
As a result, a sentencing hearing has not yet been scheduled in this case. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. For related coverage, see Digital Revenge? Hackers Linked to Iran Say They Have Trump Campaign Emails.
Consequently, trial Attorneys Ronald P. Fiorillo II and Lara E.V. Trager, of the Antitrust Division’s Washington Criminal Section, are prosecuting the case. For related coverage, see Taiwan Cracks Down on Chinese Hacker Group in Shocking Data Trafficking Case.
The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government. Federal, state and local. To learn more about the PCSF.
Specifically, to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected.
What This Means Going Forward
This development underscores the ongoing regulatory enforcement priorities of DOJ. Market participants and compliance professionals should monitor this matter closely.
