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VALDOSTA, Ga. (WALB) - A Nevada man has pleaded guilty to a 1.8-million-dollar fraud involving healthcare contracts at Moody Airforce Base.

65-year-old Scott G. Srodes, of Las Vegas, admitted in open court that he conspired to make collusive bids for healthcare shelving and storage products to be used at Moody Air Force Base. He faces two felony charges.

The Middle District of Georgia’s, U.S. attorney’s office says, Srodes and co-conspirators submitted manipulated bids for government contracts at Moody Air Force Base in Valdosta and a Nellis Air Force Base in Las Vegas.

Srodes and co-conspirators exchanged pricing information prior to submitting them while at times instructing each other on quote pricing for some projects, according to the United States Attorney’s office. The projects had a total value of more than $1.8 million.

“Bid rigging on military healthcare contracts undermines the competitive process that protects taxpayer dollars and the service members these facilities exist to serve. 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.”

The maximum penalty for a conspiracy to rig bids for an individual is 10 years in prison and a $1 million criminal fine under the Sherman Act.

The maximum penalty for a conspiracy to defraud the United States is Five years in prison and a $250,000 criminal fine. That fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine, according to the U.S. attorney’s office.

A federal district court judge will sentence following U.S. sentencing Guidelines.

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