Six Defendants Charged in Bid-Rigging Schemes, Face Decades Behind Bars

Marquez stands accused of inappropriately using sensitive information and fake bids by “competitors” to unfairly win defense contracts. Among the organizations that were targeted by the alleged fraud was the Department of Defense (DOD), which oversees the U.S. military.

If convicted, Marquez could spend 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Six Indicted

The six people indicted on Oct. 29 were Victor Marquez, Antwann Rawls, Scott Reefe, Breal Madison, Lawrence Eady and Brandon Gleeson.

Marquez, a Maryland resident, owns two IT companies with government contracts and was charged on four counts with wire fraud conspiracy and major fraud against the U.S. for rigging bids, according to his indictment.

Rawls and Reefe, who worked for Marquez, used their positions to access confidential information, then used it to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement.

Bribery and Shell Companies

Marquez’s alleged co-conspirator, Breal Madison Jr. from Maryland, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering, among other things, in which he defrauded his employer and the United States for over $7 million.

According to court documents, Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government and his supervisor, Lawrence Eady, were also included in the scheme. Both were charged.

Madison, Glisson and Eady conspired to steal money from Madison’s employer and government agencies, using Madison’s shell company, Trident Technology Solutions, to gain over $9 million, after which they used the money to finance their luxury life. Among other items the U.S. seeks Madison to forfeit are the Vanquish VQ58 yacht, 2020 Lamborghini Huracan and other vehicles.

If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count.

Bid-Rigging

Government contracts are competitive, meaning that agencies solicit bids for a project before choosing the contractor able to complete the contract at the lowest price.

Bid-rigging occurs when so-called competing companies collude to choose the “winner” of the bid by agreeing to bid higher costs than the “competitor” that is supposed to win the contract. That behavior violates Antitrust Laws, prohibiting companies from an unfair advantage against each other and consumers, who must pay higher prices in case of a monopoly or bid-rigging.

How to Report Antitrust Violations

Antitrust crimes like bid-rigging cause higher taxes and contribute to economic inefficiency and higher consumer prices.

If you have more information about this case or other suspected antitrust violations, authorities urge you to contact the Justice Department’s Procurement Collusion Task Force here.

Statements by Officials

Commenting on the case, authorities involved with the investigation and prosecution of Marquez and his coconspirators focused on the impact of monopolistic behavior, such as bid-rigging on defense procurement and the economy.

“Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division in a statement published by the Department of Justice.

“This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland.

“This investigation demonstrates the vital need to protect the DOD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DOD Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office.

“Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.

“When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars, and compromise the integrity of our intelligence community programs,” Kanter said.