A former employee of a shelving and storage distributor, Scott G. Srodes, pleaded guilty on June 5 to two felonies for conspiring to rig bids and defraud the U.S. Department of War in connection with contracts for the U.S. Air Force at facilities in Georgia and Nevada.
According to court documents filed in the Middle District of Georgia, Srodes, 65, of Las Vegas, Nevada, worked with co-conspirators to submit collusive bids for projects at Moody Air Force Base in Valdosta, Georgia, and Nellis Air Force Base in Las Vegas. The group exchanged pricing information before submitting their bids and sometimes instructed each other on specific prices to quote. The total value of these projects exceeded $1.8 million and was funded through the Defense Logistics Agency’s Facilities Maintenance, Repair, and Operations Program.
“This additional guilty plea reflects the scope of this investigation and the consequences awaiting those who conspire to defraud defense contracting programs. DCIS and our law enforcement partners will continue to pursue every individual and company responsible for defrauding the programs that support our nation’s military,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service Southeast Field Office.
Acting Deputy Assistant Attorney General Daniel W. Glad said, “America’s warfighters deserve the best healthcare, and bid rigging that distorts healthcare procurement deprives them of free and fair competition.” William R. “Will” Keyes for the Middle District of Georgia said, “We will pursue and bring to justice those who cheat the federal procurement system while we work to protect taxpayers and honest contractors from harm caused by bid rigging.”
The maximum penalty for conspiracy to rig bids under the Sherman Act is 10 years in prison with a $1 million fine; conspiracy to defraud carries up to five years’ imprisonment with a $250,000 fine or twice any gain or loss if greater than statutory limits.
The case was investigated by several agencies including the Antitrust Division’s Washington Criminal Section; Air Force Office of Special Investigations; Defense Criminal Investigative Service; and Defense Logistics Agency Office of Inspector General. Prosecution is being handled by Trial Attorneys Daniel P. Chung and Christian Neumeister along with assistance from local federal prosecutors.
The U.S. Attorney for the Middle District of Georgia serves approximately 2 million residents across 70 counties over a 25,471-square-mile area including cities like Macon, Albany, and Columbus as part of its mission within the United States Department of Justice, according to its official website.
