Mr. David’s Flooring International, a Chicago-based commercial flooring contractor, pleaded guilty to charges for its involvement in a long-running bid rigging scheme, agreeing to pay a fine of at least $1.2 million, the U.S. Department of Justice announced.
The plea is the latest development in a series of charges against a Chicago bid-rigging cartel that the DOJ began breaking up in 2019. Mr. David’s involvement in the conspiracy is believed to have begun as early as 2009 and continued until at least June 2017. Mr. David’s is the third corporation to be charged in the ongoing investigation. Five individuals have also been charged.
The two-count felony charges against Mr. David’s include conspiring with other companies to rig bids for commercial flooring projects by agreeing which company would win the bid and which would submit an intentionally losing bid, according to the DOJ.
The second count includes conspiring to launder money to conceal kickback payments the company made to Carter Brett, an account executive for a large flooring manufacturer, in exchange for unauthorized discounts. Mr. David’s issued checks to a shell corporation established by Brett for the purpose of receiving the kickback payments, according to the charge. Brett was charged for his alleged involvement in the scheme in 2020.