Mr. David’s flooring company pleads guilty to antitrust and money laundering charges
Mr. David’s agreed to pay at least a $1.2 million criminal fine for its role in the conspiracies. Mr. David’s is the third corporation charged in the ongoing investigation; five individuals have also been charged to date.
According to a two-count felony charge filed in the U.S. District Court in Chicago, Illinois, Mr. David’s conspired with other companies to rig bids for commercial flooring by agreeing which company would win the bid, and which would submit a complementary, intentionally-losing bid.
Mr. David’s participated in the conspiracy from at least as early as 2009 until at least June 22, 2017.
The second count charges Mr. David’s with 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.
According to the charge, Mr. David’s issued checks to a shell corporation established by Brett for the sole purpose of receiving the illegal kickback payments, and Mr. David’s and its co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 13, 2018.
A violation of the Sherman Act carries a statutory maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Conspiring to commit money laundering carries a statutory maximum penalty of $500,000. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine. ■