Three Florida-based promotional products distributors are facing federal criminal charges for allegedly conspiring to rig bids for sales of branded merchandise to the United States Army over a five-year span.

Lawrence O’Brien, Bruce LaRoche and Thomas Dailey illicitly schemed to eliminate competition among their companies with the aim of securing sales of promo items for a pre-determined winner, according to an indictment.

To advance their alleged scam, the conspirators exchanged bid templates and submitted bids to military customers on each other’s behalf, authorities claim. LaRoche and O’Brien also stand accused of clandestinely using shell companies to propel their alleged schemes.

“Bid rigging is not a victimless crime; it cheats taxpayers out of the benefits of competition,” said Special Agent Paul Wachsmuth, director of the Office of Procurement Fraud Investigations, U.S. Air Force Office of Special Investigations (OSI), Join Base Anacostia-Bolling, D.C.

Federal authorities have charged LaRoche, O’Brien and Dailey with violating the Sherman Antitrust Act. If convicted, they could face up to 10 years in prison and a $1 million fine on the charge.

Meanwhile, due to the alleged use of shell companies, LaRoche and O’Brien are additionally charged with conspiring to defraud the United States, a charge that carries a maximum potential imprisonment time of five years and a fine of up to $250,000.

In explaining the alleged use of shell companies, authorities said that LaRoche, for instance, created the businesses, then he or his co-conspirators submitted sham bids from the companies. The bids gave the false impression of being competitive because, among other things, they each listed a different salesperson, price or product description, despite the fact that all were drafted by the alleged schemers and the companies were owned or controlled by LaRoche, authorities said.

“The objective of the conspiracy was for defendant LaRoche and his co-conspirators to cheat the United States out of money and to interfere and obstruct the Army’s acquisition of customized promotional products,” an indictment read.

According to court papers, the conspiratorial activity occurred from about July 2014 to about December 2019. An indictment against the trio was unsealed in April 2022.

The case popped into the spotlight again on July 12 when Susan C. Bucklew, a federal judge in the U.S. District Court for the Middle District of Florida, denied a motion from O’Brien to dismiss an antitrust count against him.

In the motion, O’Brien asserted that the charge should be scrapped because the allegations are too generalized, lacking particulars about his knowledge of the conspiracy and his conscious willingness to further it.

Bucklew disagreed, saying the count sufficiently alleges the necessary elements of a conspiracy to rig bids in violation of the Sherman Act.

“Because the indictment both alleges the essential elements of a Sherman Act violation and is sufficiently specific to inform defendant of the charge against him, the motion to dismiss will be denied,” Bucklew wrote in her decision.

Bucklew also shot down O’Brien’s request to remove portions of the indictment that refer to his ownership of multiple companies. He felt the references “misleadingly” implied he was conspiring with his own businesses and employees. Once more, Bucklew disagreed.

“Because the allegations in the indictment as to defendant’s ownership of multiple companies are relevant, and not unfairly prejudicial or inflammatory, the motion to strike must be denied,” Bucklew ruled.

According to the indictment, O’Brien’s companies included MP USA Marketing Group (asi/271198), Predator Products LLC, 125 Marketing LLC, and Suncoast Marketing Teams. LaRoche’s companies were identified as Allegiance Tactical (asi/117059), Chrome Promotions LLC, and Military Survivalist LLC. Authorities said Dailey’s company was Mission Quest Advertising (asi/287514). All three accused men live in Florida and their businesses were based there, authorities said.

O’Brien’s lawyer told Law 360 that he wasn’t dismayed by Bucklew’s denial of the motion to dismiss, saying, “battling the Department of Justice in a case like this requires pursuing all legitimate avenues, but getting an indictment dismissed is a steep hill to climb. We accept and respect the court's ruling, and will forge ahead with a vigorous defense. We look forward to the fight."