What is Bid Rigging
A New Jersey federal criminal defense attorney can explain that bid rigging is an action by two or more businesses to undermine the competitive bidding process by deciding among themselves who will submit the lowest bid. A New Jersey federal criminal defense attorney will caution that sellers need to avoid practices that may be interpreted as bid rigging.
A New Jersey Federal Criminal Defense Attorney Discusses Elements of Bid Rigging
A New Jersey federal criminal defense attorney will inform you that bid rigging agreements typically involve practices such as:
- Rotating winning bids among members of the group
- Dividing the market by allocating customers, types of contracts, or geographic areas to specific members of the group
A New Jersey federal defense attorney can also tell you that these schemes are implemented by having members of the group:
- Refuse to bid or withdraw a bid without explanation
- Submit bids containing extremely high prices, while the selected winner submits a bid that is lower but still above market rates
- Provide bids containing conditions unacceptable to the buyer, while the selected winner leaves those conditions out of its bid
A New Jersey Federal Criminal Defense Attorney Discusses Consequences of Bid Rigging
A New Jersey federal defense attorney is a great source of advice on the potential consequences of a bid rigging charge. However, bid rigging falls under the antitrust laws as a restraint on trade. Consequently, these violations can lead to federal criminal prosecutions resulting in:
- Up to 10 years imprisonment
- Fines of up to $1,000,000 for individuals and $100 million for corporations
- Orders to make restitution
- Additional charges under mail fraud, money laundering, racketeering, conspiracy, perjury and other criminal laws
In addition, a New Jersey federal criminal defense attorney will explain that businesses who were the victims of bid rigging conspiracies may file separate civil claims and receive up to three times the amount of their losses.
Contact a New Jersey Federal Criminal Defense Lawyer Today for Legal Assistance
A New Jersey federal criminal defense attorney can help you determine if business practices place you at risk of a bid rigging claim. Call Tim Anderson at (732) 212-2812 to arrange for a consultation and discuss your case today.