Facilities managers rely on third-party contractors and vendors for a variety of projects, but it always pays to do your due diligence, beware of scammers, and pick partners you can trust.
Case in point: The former president and CEO of a commercial roofing company was arrested and pleaded guilty for conspiracy to suppress and eliminate competition by rigging bids on projects in Florida.
According to court documents, Gregg Wallick of Fort Lauderdale, Fla., and his co-conspirators colluded before bidding on commercial roofing projects. 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 affected a variety of commercial projects and resulted in his company illegally obtaining more than $3.5 million.
The scheme was a “cheat code used against vulnerable customers who needed roofing services in a hurricane-prone area,” according to Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division.
“Wallick’s actions illegally drove up the costs of commercial roofing projects by turning the multiple bid process on its head,” said Special Agent in Charge Brett Skiles of the FBI Miami Field Office. He added, “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 of restraining trade by conspiring to rig bids. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine.
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