Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Former NYC Department of Education manager sentenced to jail time, (Aug 20, 2025)

By Jody Coultas, J.D.

The former employee and his company will pay over $141,000 and spend six months in prison for bid rigging.

Victor A Garrido and his company, TranscendBS LLC, have pleaded guilty to rigging bids submitted to the New York City Department of Education, the Department of Justice announced. TranscendBS is a New York-based budget and procurement consulting company that submitted bids to dozens of New York City public schools. Garrido was sentenced to six months in jail and ordered to pay $141,511 in restitution to the New York City Department of Education. TranscendBS was sentenced to two years’ probation and to pay restitution of $141,511 to the New York City Department of Education (U.S. v. Garrido, No. 25-cr-00112-001-JLR (S.D.N.Y. Aug. 19 2025)) and (U.S. v. TranscendBS LLC, No. 25-cr-00112-002-JLR (S.D.N.Y. Aug. 19 2025)).

Garrido was previously employed by NYC DOE as a business manager where he provided budget and procurement guidance and training to various schools. Shortly after leaving that role, Garrido formed TranscendBS to provide similar services as a consultant to New York City public schools. During the scheme, Garrido, TranscendBS, and their co-conspirators submitted fake, artificially high “competitor” bids to make it appear as if TranscendBS was the lowest bidder for dozens of business consulting services contracts. None of the “competing” bidders actually provided these services. In addition to thwarting NYC DOE’s procurement rules to ensure that TranscendBS obtained the contracts, Garrido priced his services to just under the threshold which would have required additional scrutiny.

The scheme impacted approximately 28 New York City public schools, predominantly in low-income communities. TranscendBS won at least $707,555 in contracts from those schools, resulting in estimated losses to NYC DOE of $141,511.

In his plea agreement, Garrido also admitted to fraudulently obtaining over $20,000 in COVID-19 relief unemployment benefits and to failing to file and pay federal or state income taxes for himself or for his company for tax years 2020 to 2023. In connection with his unemployment benefit fraud, Garrido was also ordered to pay $23,100 in restitution to the New York State Department of Labor.

“The Defendant stole money from public school students, and taxpayers more generally, all for his own selfish gain,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The Antitrust Division and its PCSF partners will aggressively prosecute and hold accountable those who defraud American students and the American taxpayer.”

In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government—federal, state and local.

Companies: TranscendBS LLC

News: Antitrust AntitrustDivisionNews NewYorkNews