US · fined · ~5 min read
U.S. v. Mr. David’s Flooring — commercial flooring bid-rigging
2009–2021 · commercial flooring, local construction, government contracting, small business cartels
A commercial flooring contractor pleaded guilty to years of fake competing bids and faced a recommended fine of $1.2–$1.6 million. Mid-market trades learn the hard way that ‘helping’ a rival with a high quote is bid-rigging.
The story
Office build-outs and institutional facilities need carpet and hard flooring. Bids often look competitive on paper. DOJ’s Chicago flooring probe found contractors taking turns—and covering for each other with intentional losing quotes.
Mr. David’s Flooring admitted participation and agreed to recommend a seven-figure criminal fine. Sister cases charged other installers and even a manufacturer account executive who helped orchestrate rotations.
For small commercial contractors, those dollars are existential. A seven-figure fine plus reputational damage can end a family business even when the underlying jobs seemed routine.
Why it matters
Complementary bidding is a common SME construction offence.
Multi-year schemes accumulate huge guideline fines.
Industry-wide probes mean one confession can cascade.
What was claimed
Bid-rigging and price-fixing on commercial flooring contracts.
Meetings and communications to suppress competition.
The other side
Company pleaded guilty under a negotiated fine recommendation.
What it means for you
Decline any request to ‘put in a number so we look busy.’
Audit historical email for cover-bid language if you inherit an old firm.
Consider leniency counsel immediately if you discover past participation.
Bottom line
Mr. David’s Flooring’s plea shows construction SMEs remain a DOJ cartel staple.
Timeline
2009–2017
Industry bid coordination
DOJ’s flooring investigation alleged contractors exchanged complementary bids and fixed prices on commercial installation jobs.
2021
Corporate plea
Mr. David’s Flooring pleaded guilty; parties jointly recommended a $1.2–$1.6 million fine.
Key dates
- Conspiracy period (charged industry probe)
- 2009–2017
- Mr. David’s plea agreement
- August 2021
Formal snapshot
Summary: Mr. David’s Flooring International, LLC—a commercial flooring contractor—pleaded guilty to rigging bids and fixing prices with rivals. The plea agreement recommended a criminal fine between $1.2 and $1.6 million, another mid-market construction SME caught in DOJ’s flooring industry probe.
Regulator / plaintiff argument: Flooring contractors met and communicated to suppress competition by rigging bids and fixing prices on commercial flooring jobs across the United States.
Outcome: August 2021 plea agreement recommending a $1.2–$1.6 million criminal fine; part of a broader Chicago flooring investigation with multiple company and individual pleas.
Remedies: Criminal fine within the agreed range; ongoing related prosecutions in the industry.
Conduct tags
Laws referenced
- Sherman Act §1 — 15 U.S.C. §1
Companies
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