Victor A. Garrido, a former business manager for New York City public schools, has been sentenced to six months in prison for rigging bids and committing multiple frauds. Garrido and his company, TranscendBS LLC, were also ordered to pay over $164,000 in restitution to government agencies.
Garrido, who once worked for the New York City Department of Education (NYC DOE), used his insider knowledge to secure contracts for his own consulting company. From November 2020 to January 2023, he manipulated the bidding process for dozens of school contracts, mainly targeting schools in low-income neighborhoods.
How the Scheme Worked
After leaving his job at NYC DOE, Garrido created TranscendBS to offer budget and procurement services to public schools. Instead of competing fairly, he submitted fake high bids from supposed competitors. This trick made his company look like the lowest bidder, ensuring he won contracts.
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Bid rigging is a type of fraud where companies conspire to manipulate the bidding process. It makes it appear as though multiple businesses are competing fairly, but in reality, one company is prearranged to win. This is illegal because it undermines fair competition and can lead to higher costs for taxpayers.
The contracts were for business consulting services, and the total value of the contracts TranscendBS won was over $700,000. The manipulation caused estimated losses to the NYC DOE of more than $141,000. The scam targeted around 28 public schools, affecting students and staff who relied on these funds for essential services.
Investigators found that Garrido intentionally set his contract prices just below thresholds that would require extra review. This allowed him to avoid scrutiny and continue the scheme unnoticed for years.
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Additional Fraud Charges
Garrido also fraudulently collected over $20,000 in COVID-19 relief unemployment benefits. He failed to file or pay federal and state income taxes for both himself and his company from 2020 to 2023.
For the unemployment benefits fraud, Garrido was ordered to pay $23,100 in restitution to the New York State Department of Labor. In total, including the losses from the school contracts, he must pay more than $164,000 in restitution.
Officials emphasized that these crimes harmed students, taxpayers, and the integrity of government systems. Acting Deputy Assistant Attorney General Omeed A. Assefi from the Justice Department’s Antitrust Division said, “The Defendant stole money from public school students, and taxpayers more generally, all for his own selfish gain.” FBI Operations Director Chad Yarbrough added, “The FBI has zero tolerance for those who attempt to rig the system to benefit themselves.”
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Law Enforcement Response
Multiple agencies worked together to investigate and prosecute the case. This included the FBI, the Justice Department’s Antitrust Division, the U.S. Department of Labor Office of Inspector General, and the Office of the Special Commissioner of Investigation for NYC Schools, led by Anatasia Coleman. Trial attorneys Helen Christodoulou, Kathryn Carpenter, and Maia Lichtenstein handled the prosecution.
The case was handled under the Procurement Collusion Strike Force (PCSF), a joint effort by federal and local authorities. PCSF investigates and prosecutes fraud and corruption in government contracts to protect taxpayer money. Its goal is to ensure fair competition and prevent criminals from exploiting public procurement systems.
Officials stressed that the sentence sends a strong message: individuals who manipulate government systems for personal gain will be held accountable. Garrido’s actions not only cheated the government but also deprived students of vital school services and support.