When Federal Prosecutors Come for Local Business Owners
Welcome to Spodek Law Group. Our goal is to give you the reality of antitrust criminal prosecution in Queens - not the corporate boardroom fiction you see in the news, not the assumption that "antitrust is for billion-dollar companies," but the actual truth about what happens when federal investigators decide your handshake agreements with other contractors constitute a criminal conspiracy.
The Procurement Collusion Strike Force exists. This is a joint task force between the DOJ Antitrust Division, 22 US Attorney offices, and 34 federal agencies created specifically to investigate and prosecute bid rigging, price fixing, and market allocation at the local level. They are not hunting Microsoft. They are hunting contractors who bid on government projects, suppliers who coordinate pricing at trade association meetings, and business owners who divided up territories with competitors over coffee.
In February 2024, federal prosecutors executed the largest single-day bribery takedown in Department of Justice history. The target was not Wall Street. The target was 70 New York City Housing Authority employees - building superintendents, maintenance supervisors, mid-level bureaucrats earning $60,000 a year - who accepted kickbacks of $500 to $2,000 on small "micro-purchase" contracts. By late 2025, every single defendant had been convicted.
What Makes Queens Contractors Prime Federal Targets
Heres the thing nobody wants to hear. If you work in construction, building services, government contracting, or any industry where you know your competitors personally, you are exactly the type of defendant federal antitrust prosecutors want to convict. Not because your more dangerous then corporate executives. But because your easier to prosecute.
Think about it from the prosecutors perspective. A case against a Fortune 500 company involves armies of lawyers, unlimited legal budgets, and years of litigation. A case against local contractors involves handshake deals documented in text messages, small legal defense budgets, and defendants who often dont even understand they've committed federal crimes until the handcuffs appear. Every conviction counts exactly the same in DOJ statistics wheather its a billion-dollar pharmaceutical company or a Queens plumbing contractor.
The PCSF has opened over 140 federal grand jury investigations since 2019. They've secured more then 60 guilty pleas or trial convictions. The longest individual prison sentence has been 78 months - thats six and a half years in federal prison. And the fines have exceeded $65 million across all cases.
OK so you might be thinking: those must be major schemes involving millions of dollars. Actualy, no. The NYCHA case involved kickbacks as small as ten percent of contracts. Contractors were paying $500 bribes on $5,000 jobs. The Department of Justice dedicated significant resources to prosecuting corruption at the micro-purchase level - contracts designed to be small enough to avoid competative bidding requirements.
If you believe your too small to matter, you are wrong. Being small makes you a better target, not a protected one.
The Investigation You Dont Know About
Heres were people get confused about antitrust investigations. They think it works like the movies. FBI agents show up at your door, ask questions, you explain your side, and they either arrest you or leave. Thats the fantasy version.
What actualy happens is far more dangerous. Federal grand jury investigations are secret by law. Grand juries meet in closed sessions. Subpoenas go to your email provider, your bank, your trade association, your competitors - and you never receive notice. Witnesses are prohibited from disclosing that they testified. Your business partner could be cooperating with federal prosecutors for six months before you have any idea an investigation exists.
As Todd Spodek explains to clients facing these situations: the investigation is often essentially complete by the time you learn about it. The grand jury has heard testimony. Documents have been collected and analyzed. Witness statements have been taken. Prosecutors have already formed their theory of the case. When you finally receive that target letter or subpoena, your not at the beginning of a process - your near the end of one that started without you.
This is why talking to investigators without counsel is catastrophic. You think your explaining innocent conduct. There seeing every word through a lens of evidence they've already gathered. That email you sent three years ago saying "lets coordinate on the Johnson bid" - you meant lets not waste effort duplicating proposals. They see a smoking gun for bid rigging conspiracy. Without knowing what evidence already exists, every statement you make can incriminate you in ways you cant anticipate.
Let that sink in. The investigation might be happening right now. Your business partner might already be cooperating. And you would have absolutely no way to know.
How Normal Business Practices Become Federal Crimes
The Sherman Act makes certain conduct "per se" illegal. This legal term means exactly what it sounds like - the conduct itself is the crime, regardless of reasonableness, regardless of market conditions, regardless of whether anyone was harmed. Bid rigging is per se illegal. Price fixing is per se illegal. Market allocation is per se illegal.
Now heres the part that destroys business owners. What practicioners call "bid rigging" and what Queens contractors call "professional courtesy" are often the exact same thing. You've been doing business in this area for thirty years. You know all the other contractors. When there not busy, you send referrals there way. When your not busy, they send work to you. Sometimes you informally agree not to compete on certain jobs because the travel dosent make sense for your crew. This is how business works in Queens. This is how relationships sustain small businesses through economic cycles.
This is also what federal prosecutors call criminal conspiracy.
Sound familiar? Every industry has these dynamics. Trade association meetings where competitors discuss "market conditions" and informally agree on sustainable pricing levels. Conversations at industry conferences about which territories make sense for which companies. Handshake agreements to stop the undercutting that was destroying everyone's margins.
But wait - every one of those scenarios can be characterized as price fixing, market allocation, or bid rigging under federal law. And the penalty is not a fine. The penalty is up to ten years in federal prison.
At Spodek Law Group, weve seen clients who genuinly did not understand they had broken any law. They thought they were building professional relationships. They thought they were participating in normal industry practices. They were right about what everyone else in their industry was doing. They were wrong about weather that made it legal.
The Trade Association Meeting That Could Send You to Prison
See the problem? Your not even thinking about it the right way. That monthly industry meeting where everyone discusses "market challenges" feels completely innocent. The breakfast roundtable where competitors share frustrations about materials costs and agree that pricing below certain levels is "unsustainable." The informal conversation at a trade show where someone suggests maybe everyone should focus on different geographic areas to reduce wasteful competition.
Every one of those conversations can become evidence in a federal indictment.
The DOJ specificaly trains prosecutors to look for trade association involvement. Meeting minutes become exhibits. Attendee lists become witness rosters. Pricing discussions documented anywhere - even in casual follow-up emails - become proof of conspiracy. And the participants who thought they were just networking with colleagues? They become co-conspirators facing the same ten-year federal maximum.
In 2025, two consulting company owners pled guilty to a bid rigging scheme involving New York City public schools. There scheme was remarkably simple: they created fake "competitor" bids to make their company appear to be the lowest bidder. They didnt bribe anyone. They didnt threaten anyone. They just submitted paperwork that made competition look real when it wasnt. The DOE business manager who helped them was sentenced in August 2025.
Heres what that case teaches Queens business owners. You dont need violence. You dont need millions of dollars. You just need an agreement - even an informal one - that affects how bids are submitted or prices are set. And you need to leave any evidence that federal investigators can find later.
Think about your email archive. Your text messages. Your calendar showing which industry meetings you attended. Every one of those could be sitting on a server somewhere, waiting to be subpoenaed.
Why Your Business Partner Might Testify Against You
The DOJ Antitrust Division operates a formal leniency program. The first company or individual to report cartel activity and cooperate fully can avoid criminal conviction, fines, and prison. Not reduced penalties - complete immunity.
Heres the kicker. There's only one ticket out. First person to the door gets immunity. Everyone else gets prosecuted.
Think about your most trusted business relationships. The competitor you've worked with for decades. The partner who you've informally coordinated bids with "to avoid wasteful competition." The colleague from your trade association who you discuss pricing strategy with. If federal investigators approach any of them - if any of them even suspects an investigation might be coming - they face a choice. Cooperate immediately and receive immunity, or wait and risk prosecution.
What would you do in there shoes? What would your partner do?
Cooperation isnt just answering questions. Cooperation means wearing a wire. It means recording phone calls with you. It means sitting across from you at lunch and documenting every word for federal prosecutors. It means testifying against you at trial while you face ten years in prison and they walk free.
This is the part nobody talks about. The relationships that built your business are now your greatest legal vulnerability. The trust you developed over decades is exactly what prosecutors will use to build there case. And if your partner beats you to cooperation, there is no second place prize.
The Timeline Nobody Prepares You For
Federal criminal investigations do not move on your schedule. They move on theres. Understanding the timeline is essential to understanding why early legal representation matters.
Months 1-12 (You Dont Know): Grand jury is convened. Subpoenas issued to third parties - email providers, banks, business records. Witnesses interviewed under immunity agreements. Your competitor or partner begins cooperating. None of this is disclosed to you.
Months 12-18: Additional evidence gathered. Cooperating witnesses provide context for documents. Prosecutor develops theory of the case. Decision made on indictment.
Month 18+: Target letter issued or arrest warrant executed. This is typicaly when defendants first learn investigation exists. But by this point, the government has spent 18 months building their case without any opposition.
Notice the pattern? By the time you can respond, the investigation is basicly complete. This is why waiting until you receive official notice is catastrophic. If you have any reason to believe your industry practices might attract scrutiny - if a competitor mentions being contacted by investigators, if you hear about grand jury subpoenas in your industry, if someone at a trade association meeting mentions federal interest - that is when representation must begin. Not after arrest. Not after indictment. Before.
What Federal Prosecution Actually Means For Your Life
Sherman Act antitrust violations carry a maximum of ten years in federal prison per count. The DOJ's official position is that imprisonment is the appropriate penalty for bid rigging and price fixing, even for first offenders. Probation-only sentences are the exception, not the rule.
But prison is only the beginning. Federal conviction means:
Your professional licenses - contractors licenses, business certifications - can be revoked. Many licensing bodies have provisions requiring "good moral character" that are automaticaly violated by federal criminal conviction.
Your ability to bid on government contracts ends. Debarment from federal contracting is standard following antitrust conviction. If government work is significant to your business, that revenue stream disappears permanantly.
Your business relationships collapse. Customers who learn of your prosecution will distance themselves. Banks may call loans. Insurance carriers may cancel policies. The business you spent decades building can implode within months of indictment - well before any trial or conviction.
Your family pays the price. Spouses face financial devastation. Children hear about federal charges. The reputation you built in your comunity transforms overnight.
This is what prosecutors know and defendants learn too late. Even if you ultimately prevail at trial, the prosecution itself destroys lives. The only effective defense is prevention - intervening before charges are filed, before the investigation becomes public, before the damage is done.
What an Experienced Antitrust Defense Actually Looks Like
Antitrust criminal defense is not general criminal defense with a different statute. It requires specific expertise in how DOJ prosecutes these cases, what evidence they prioritize, how grand jury investigations proceed, and what cooperation or resolution options exist.
At Spodek Law Group, antitrust defense means understanding the playing field before stepping onto it. It means:
Conducting internal investigations to understand exposure before prosecutors finish there investigation. What communications exist? What industry practices might be characterized as unlawful? Who else might be cooperating?
Engaging with prosecutors from a position of knowledge rather then surprise. If cooperation makes sense, being first to cooperate - not second or third. If defense makes sense, preparing that defense while evidence is fresh and witnesses available.
Protecting what can be protected. Even in worst-case scenarios, the difference between competent representation and inadequate representation can be years of prison time, millions in fines, the survival or death of your business.
This is what Todd Spodek means when he talks about fighting for clients. Not theatrical courtroom performances - methodical investigation, strategic positioning, and relentless protection of your interests at every stage.
The Difference Between a Target Letter and an Indictment
Look, many clients come to us at different stages. Some recieve a target letter - an official notification that they are the target of a federal criminal investigation. Others learn about investigations through industry rumors or when a business partner mentions being contacted. Some first learn about there exposure when federal agents appear at there door with handcuffs.
The stage at which you engage counsel determines your options. Dramaticaly.
If you engage before a target letter - when you merely suspect an investigation might be coming - you have maximum flexibility. Internal investigation can identify exposure. Evidence can be preserved properly. Cooperation options can be evaluated when they have maximum value. Defenses can be developed while memories are fresh and witnesses available.
If you engage after a target letter but before indictment, options narrow but still exist. The government has made there intentions clear, but formal charges havent been filed. Cooperation may still be possible, though its value diminishes the longer you wait. Pre-indictment negotiations can sometimes resolve matters without the public spectacle and colateral damage of formal charges.
If you engage after indictment, your primarily in damage control. The government has committed to prosecution. Evidence has been compiled. The case will proceed publicly. Defense becomes the only option, and it starts from a position of significant disadvantage.
This is why Spodek Law Group emphasizes early intervention. Not because its better for our business - frankly, cases that never become public prosecutions involve less dramatic courtroom work. We emphasize early intervention because its better for clients. The goal is to protect your freedom, your business, your family - and that protection is maximaly effective before the government completes its case against you.
What Most Defense Lawyers Wont Tell You About These Cases
Read that again. This next part is important.
Federal antitrust prosecution is not common criminal defense work. Most criminal defense attorneys - even excellent ones - have never handled an antitrust matter. The procedural rules, the evidentiary standards, the plea negotiation dynamics, the sentancing guidelines - they all operate differently in antitrust cases.
The DOJ Antitrust Division has prosecutors who do nothing but these cases. Year after year. They understand exactly how to build evidence, exactly what defenses fail, exactly how to pressure defendants into cooperation. Going against this specialization with generalist defense counsel is like bringing a family doctor to a heart surgery.
At Spodek Law Group, we understand antitrust prosecutions because we've handled them before. We know what cooperating witnesses actualy say. We know what evidence the government prioritizes. We know which arguments work and which arguments courts have heard a thousand times. We know how to identify when cooperation makes sense and when fighting makes sense. We know how to protect clients at every stage - not just at trial, but during investigation, during negotiation, during every interaction with federal authorities.
This isnt about credentials on a website. Its about understanding a specific type of prosecution well enough to protect clients facing it.
The Decision You Face Right Now
If your reading this, something prompted that search. Maybe you received a subpoena. Maybe you heard investigators are asking questions in your industry. Maybe your sitting in a trade association meeting wondering if the conversation your hearing could be problematic. Maybe your just a careful business owner who wants to understand the legal landscape.
Whatever brought you here, understand this: the clock is running. If an investigation exists, it has already been running for months without your knowledge. If cooperation is your best option, every day of delay reduces its value. If defense is your path, evidence is being gathered right now that will be used against you.
Spodek Law Group handles antitrust matters because we understand what's actually at stake. Your not just facing legal charges - your facing the potential destruction of everything youve built. Your freedom. Your family's security. Your reputation. Your lifes work.
The next conversation you have could determine the next decade of your life. Call us at 212-300-5196. That call is confidential, its protected by attorney-client privilege, and it costs you nothing. Not making that call - waiting to see what happens, hoping the investigation goes elsewhere, assuming your too small to matter - that could cost you everything.
They've been building their case for months. Its time to start building yours.
