LAS VEGAS (FOX5) — A Las Vegas man has pleaded guilty to two felonies for conspiring to rig bids and defraud the U.S. government in connection with projects for U.S. Air Force facilities, including work at Nellis Air Force Base in Las Vegas, the Justice Department said.
Scott G. Srodes, 65, a former employee of a shelving and storage distributor, admitted he and co-conspirators submitted collusive bids for multiple projects at healthcare facilities at Moody Air Force Base in Valdosta, Georgia, and for aircraft maintenance facilities at Nellis, according to court filings in the Middle District of Georgia.
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Prosecutors said the group exchanged pricing information before submitting bids and, at times, instructed each other on what prices to quote.
The projects had a total value of more than $1.8 million and were funded through the Defense Logistics Agency’s Facilities Maintenance, Repair, and Operations Program, the Department of Justice officials said.
The guilty plea is the second in an ongoing investigation into bid rigging and fraud affecting U.S. military facilities, the Justice Department said.
Authorities said the case was investigated by the Antitrust Division’s Washington Criminal Section, the Air Force Office of Special Investigations, the Defense Criminal Investigative Service and the Defense Logistics Agency Office of Inspector General.
A federal judge will decide Srodes’ sentence after considering federal sentencing guidelines and other factors, officials said.
Prosecutors said the maximum penalty for bid-rigging conspiracy under the Sherman Act is 10 years in prison and a $1 million criminal fine, and the maximum penalty for conspiracy to defraud the United States is five years in prison and a $250,000 fine.
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