Multiple People Plead Guilty in Scam to Rig Bids of Commercial Roofing Projects
Four people and a company have pleaded guilty to rigging commercial roofing bids throughout central Florida, a violation of the Sherman Act.
Glenn Bailey and Douglas Sutter both pleaded guilty to charges that they participated in the conspiracy to eliminate competition and gain lucrative roofing jobs, which was a direct violation of the Sherman Act, according to prosecutors.
Kenneth Cody and the company, Service Works of Fort Lauderdale, previously pled guilty to the same charges on Oct. 3, 2024, while defendant Christopher Rakos struck a plea deal on Dec. 6, 2024.
Sherman Act Violations
The Sherman Act was passed in 1890 as one of the three core antitrust laws. It is a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade,” according to the Federal Trade Commission (FTC). The antitrust laws were written to protect fair competition for consumers and make sure businesses work efficiently.
Conspiracy to Rig Commercial Roofing Bids
Glenn Bailey owns and operates a commercial roofing company in Lehigh Acres, Fla., that provides roofing services across the State of Florida. He has been the CEO of Colonial Roofing Inc. since 1989, according to his LinkedIn Page.
Bailey’s company focuses on flat and sloped roofs for commercial properties such as schools, retail stores, and condominiums. These commercial properties typically required bids from multiple contractors before awarding jobs; this is where the defendants manipulated the system to enrich themselves.
Starting in 2010, Bailey and the other defendants conspired when bidding on those commercial roofing projects, inflating prices and rigging bids to push contracts one way or the other, according to the charging documents.
Typically, commercial contracts are awarded to the lowest bidder, so by submitting falsely inflated bids, a company can increase its chances of winning the contract, behavior that is illegal under the Sherman Act.
Deciding Who Would Win
The defendants would pre-arrange which contracts each company would win and agree on which company would purposefully bid exaggerated estimates with the intention of losing the bid and having the project awarded to the other company. The scam affected more than $1.8 million in sales to Bailey’s roofing company, according to the plea agreement.
Bailey was facing a maximum sentence of 10 years in prison and a fine equal to either $1 million, twice the financial gain of the crime, or twice the losses of the victims, whichever is greater. However, as a result of his plea deal, prosecutors agreed they would not seek additional charges and recommended that the court impose a prison sentence at the lower end of the range, according to the plea agreement.
Official Comments
Officials involved in the case hailed the decision as a win for efforts to protect Florida consumers from predatory behavior by contractors.
“Safe, affordable roofing is critical to Florida communities that are prone to hurricanes and other harsh weather conditions,” Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division said in a press release.
“The guilty pleas secured today further demonstrate our commitment to protecting the competitive bidding process that is essential to constructing and maintaining America’s infrastructure,” Mekki said.
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