Executive Pleads Guilty to a Seven-Count Indictment Two Weeks Before Trial, Admits to Longstanding Antitrust and Wire Fraud Conspiracies Affecting Wildfire Services
The owner of a contractor company that provided fuel truck services to the U.S. Forest Service’s wildfire fighters pleaded guilty to a seven-count indictment yesterday for his role in schemes to rig bids, allocate territories, and commit wire fraud over an eight-year period. Kris Bird, 62, pleaded guilty to all charges against him two weeks before trial, with no assurances from the government as to the sentence prosecutors will recommend to the judge. The plea follows a judicially authorized wiretap investigation that led to the indictment of two executives in December 2023. Both executives pleaded guilty and are now scheduled to be sentenced in June 2025.
As set out in the factual basis filed in the U.S. District Court for the District of Idaho, Bird admitted to conspiring with Ike Tomlinson, 61, and others to rig bids and allocate territories in the market for wildfire-fighting fuel truck services for certain dispatch centers of the U.S. Forest Service’s Great Basin wildfire dispatch region between March 2015 and March 2023, in violation of Section 1 of the Sherman Act. Bird further admitted to conspiring to commit wire fraud during the same period, and to committing five acts of wire fraud. At the change-of-plea hearing, Bird also admitted to the forfeiture allegations in the indictment.
“Bid-rigging and other collusive, anticompetitive agreements are neither sophisticated nor lawful. As the defendants have now conceded, they selfishly damaged essential taxpayer-funded services critical to protecting the American public from wildfires,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The meticulous investigation led by the Antitrust Division’s Procurement Collusion Strike Force and its law enforcement partners left the defendant with little choice but to plead to the indictment. The Justice Department will not treat bid-rigging as business as usual.”
“Citizens and Idaho businesses must have access to fair competition for government contracts,” said Acting U.S. Attorney Justin Whatcott for the District of Idaho. “The guilty pleas in this case help ensure equal opportunities for all Idaho businesses and protects taxpayers from paying inflated contract prices.”
"The defendant illegally profited from American taxpayer money," said Special Agent in Charge Mehtab Syed of the FBI Salt Lake City Field Office. "The FBI and our partners are committed to rooting out fraud and protecting fair competition in the bidding for government contracts."
"We will continue working with our law enforcement partners to fight fraud in federal contracting,” said Assistant Inspector General for Investigations James Adams of the General Services Administration Office of Inspector General.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho, FBI Salt Lake City Field Office, Boise Resident Agency, and General Services Administration Office of Inspector General investigated the case. Assistant Chief Christopher J. Carlberg and Trial Attorneys Elena A. Goldstein, Daniel B. Twomey, and Matthew Chou of the Antitrust Division's San Francisco Office, and Assistant U.S. Attorney Sean M. Mazorol for the District of Idaho are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government—federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
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Source: Justice.gov
