Bid-Rigging Schemes in Securities Markets
Bid-rigging is an illegal agreement among conspirators in an auction to predetermine the winning bidder. News that the DOJ and the SEC are investigating bid-rigging schemes in the municipal securities market should not come as a surprise. Bid-rigging conspirators in variety of markets have used the same basic strategies to generate illicit profits for decades. Their actions cause measurable harm to the issuers of the securities involved.