A bill currently working its way through the Texas legislature would increase penalties for “bid-rigging.” If the bill becomes law, bidding fraud charges that result in gains of more than $300,000 would be treated as first-degree felonies, carrying a potential prison sentence of up to 99 years in prison.
Proponents say the bill is necessary to combat what they say is widespread fraud and abuse in government contracts, as evidenced by recent scandals in Harris County and other parts of the state.
What is bid-rigging?
“Bid-rigging” is a loosely-defined term referring to fraud in the bidding process. Government contracts are meant to promote competition by encouraging multiple parties to submit bids. Government agencies at the federal, state and local levels are then supposed to award the contract based on cost and other factors that benefit taxpayers.
Bid-rigging occurs when parties abuse this process through insider deals. During a recent Texas Senate hearing, the district attorney for Fort Bend County said this kind of fraud happens every day at every level of government.
Harsher penalties
Currently, bid-rigging is treated as a third-degree felony. The new bill increases penalties based on the amount of financial gain the defendant received through the fraud.
Proponents say the harsher penalties are necessary to serve as a disincentive against illegal behavior. They say that, in a case involving a lucrative contract and large profit margins, the financial incentives can outweigh the legal risks associated with current penalties.
Defending against fraud charges
If the new bill becomes law, proponents say it will reduce fraud and waste in government, thereby helping taxpayers.
But the people accused of bid-rigging have the right to defend against the charges. With much harsher penalties on the line, it will become imperative that the accused take their defense seriously and seek out professionals with experience in white-collar criminal defense.