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Four School Bus Company Owners Convicted for Bid Rigging
A federal jury in Puerto Rico has convicted four school bus company owners of participating in bid rigging and fraud conspiracies at an auction for public school bus transportation services in Puerto Rico’s Caguas municipality.
Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez and René Garay Rodríguez were found guilty of conspiring to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015.
Each individual was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to fraudulently obtain contracts for school bus transportation services.
The convictions are a result of a week-long trial in the U.S. District Court of the District of Puerto Rico in San Juan. Sentencing is set for May 30, 2017.
“These defendants enriched themselves at the expense of Puerto Rico schools and have been held accountable by a jury of their peers,” said Acting Assistant Attorney General Brent Snyder of the Antitrust Division. “The division will continue to work with our law enforcement partners to ensure that school districts and other consumers benefit from competitive markets.”
“These convictions should serve as a reminder that Federal law enforcement agencies intend to vigorously prosecute those who manipulate government bidding processes to enrich themselves illegally,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “Federal law enforcement agencies will continue their ongoing efforts to investigate and prosecute these crimes, in order to promote and protect free and fair competition in the marketplace.”
The defendants were convicted of bid rigging and market allocation in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.”
Key Facts
- State: Federal
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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