New York, NY – A former business manager for the New York City Department of Education (NYC DOE) was sentenced to six months in federal prison on Tuesday for masterminding a bid-rigging scheme that cheated numerous public schools, primarily in low-income areas.
Victor A. Garrido, hailing from Peekskill, NY, was also mandated to pay $141,511 in restitution to the NYC DOE after confessing to manipulating contract bids via his consulting firm, TranscendBS LLC. Garrido and his firm entered a guilty plea in March for rigging bids from November 2020 to January 2023.
Federal prosecutors stated that Garrido exploited his insider knowledge gained from his prior position as a NYC DOE business manager to unlawfully secure consulting contracts. After departing from the department, he established TranscendBS to offer similar budgeting and procurement services. He then colluded to submit fraudulent, inflated competitor bids to ensure TranscendBS was perceived as the lowest bidder for numerous school contracts. Ultimately, his company secured contracts worth over $700,000, leading to estimated losses exceeding $140,000 for the city’s education department.
“These were funds intended to support public school students, especially in underserved communities,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The defendant stole taxpayer dollars for his own gain, and we will continue to hold individuals like him accountable.”
The plan impacted around 28 schools and intentionally evaded oversight by maintaining contract sums slightly below the limit that would have prompted further examination.
Alongside the bid-rigging allegations, Garrido confessed to unlawfully acquiring more than $20,000 in COVID-19 unemployment benefits and neglecting to file or pay personal and business taxes from 2020 to 2023. He was also mandated to reimburse $23,100 to the New York State Department of Labor due to the unemployment fraud.
Federal authorities highlighted the wider consequences of this case.
“Bid-rigging with school contracts is thoroughly unacceptable,” said Anatasia Coleman, Special Commissioner of Investigation for the NYC School District. “It deprives schools of vital funds and students of a supportive learning environment. We will continue working with our federal partners to root out these crimes.”
