Contractor Admits to Rigging Military Contract Bids, Securing Over $17 Million

The Department of Justice announced this week that John “Mark” Leveritt, age 62, pleaded guilty to rigging bids on public military contracts in Texas and Michigan.

According to court documents, Leveritt admitted that he and others conspired to create a false impression of more competition by rigging bids on government. Aside from falsely representing himself as a worker for one business to obtain contracts, Leveritt also admitted having falsely claimed that he was a minority, disadvantaged or disabled person so that he could obtain government contracts set aside for qualified minority, disadvantaged or disabled businesses.

Leveritt secured seven government contracts exceeding $17.5 million for work performed at Red River Army Depot, Texas, and U.S. Contracting Command, Michigan, contracts between May 2013 and April 2018.

He also confessed to providing a government employee with tickets to a 2011 World Series game; college football tickets; family vacations to Las Vegas; contributions to children's sports coached by the government employee; and some 100 meals at restaurants.

The U.S. Attorney’s Office for the Eastern District of Texas, and the Dallas Field Offices of the U.S. Army Criminal Investigation Division (CID) and the Federal Bureau of Investigation (FBI) Office, conducted the investigation. The Justice Department's Antitrust Division in Washington is prosecuting the case.

“Rigging bids undermines the benefits of competition and takes money out of the pockets of taxpayers. The public deserves a level playing field when doing business with the government,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division.

Leveritt pleaded guilty to violating Section 1 of the Sherman Act, which carries a maximum penalty of 10 years in prison and a fine of $1 million—a fine that can increase in line with the defendant's personal gain or twice the government losses if exceeds the statutory maximums.

When determining the sentence, a federal district court judge will consider the U.S. Sentencing Guidelines and other relevant factors.