A federal grand jury has indicted Jon Christopher Burt, Gerald Steven Lavender, and Jack Nelson Purvis Jr. in Mississippi for allegedly rigging bids for sports equipment sold to public schools. The indictment claims that, for over a decade, these men conspired to manipulate the bidding process, allowing them to profit while costing schools millions of taxpayer dollars.
The scheme reportedly began around July 2010 and continued until July 2023. During this period, at least 44 public schools in Mississippi were affected by these alleged fraudulent activities. Schools believed they were receiving fair bids for sports equipment, but in reality, the winners of the contracts were pre-determined.
According to the indictment, Burt, Lavender, and Purvis submitted fake bids, often intentionally higher than the winning bid. These “second quotes” were designed to make the process look competitive. In some cases, school staff, including coaches, were allegedly involved as co-conspirators in the scheme.
The indictment also highlights that Jon Christopher Burt was separately involved in another conspiracy from June 2016 through September 2022. These actions violated Mississippi procurement laws, which require at least two competitive bids for purchases over $5,000.
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How the Scheme Worked
The indictment explains that Burt, Lavender, and Purvis agreed in advance who would win each bid. They then created fake or inflated bids to meet the legal requirement for multiple bids. These fake bids made it appear as if the schools were choosing among competitive offers, but in reality, the process was controlled by the conspirators.
This type of scheme is illegal under the Sherman Antitrust Act, which prohibits collusion that restricts competition. Both the primary and separate conspiracies resulted in millions of dollars of taxpayer funds being misused.
Authorities, including Daniel Glad, Acting Deputy Assistant Attorney General of the Justice Department’s Antitrust Division, stated that public school funding, including money intended for sports programs, should benefit students. The alleged fraud deprived schools and students of fair pricing and access to quality equipment.
Federal prosecutors have charged Burt, Lavender, and Purvis with violating Section 1 of the Sherman Act. Burt faces an additional count for his separate conspiracy. Those found guilty could face up to ten years in prison and fines up to $1 million. Fines may increase if the crime resulted in larger losses to the victims or greater personal gains.
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Investigation and Enforcement
The investigation is being led by the U.S. Department of Justice’s Antitrust Division and the Federal Bureau of Investigation (FBI), with assistance from the U.S. Attorney’s Office for the Northern District of Mississippi. Authorities prosecuting the case include Laura Butte, Assistant Chief; Marc Hedrich and Jessica Bigby, Trial Attorneys; and Paul Torzilli, Senior Litigation Counsel.
These indictments are part of a broader effort to combat antitrust crimes in government procurement. The Procurement Collusion Strike Force (PCSF), a joint law enforcement initiative, investigates bid rigging, price fixing, and other fraudulent schemes that affect government spending at local, state, and federal levels.
Whistleblowers who provide original information leading to recoveries of at least $1 million may be eligible for rewards ranging from 15% to 30% of the collected funds. Reports can be submitted through the Justice Department’s whistleblower program.
Authorities stress that an indictment is only an allegation, and all defendants are presumed innocent until proven guilty in court.
The case highlights the importance of oversight and fair competition in public school procurement. Federal agencies are actively working to prevent fraudulent schemes and ensure that taxpayer money and opportunities for students are protected.