Peter Scott and his nephew, Robert “Robbie” Scott Jr. were both indicted on a 13-count federal indictment of defrauding the city of Sacramento. Peter Scott is from Roseville and Robert Scott is from Sacramento.

The men are accused of submitting a fraudulent bid and surety bonds on behalf of Advantage Demolition and Engineering in bidding on the city’s water meter retrofit project. The bonds guaranteed execution, payment, and performance of two multi-million dollar contracts with the city for the replacement of water meters. The men actually submitted bids for eight different water meter retrofit projects.

When the city figured it they stopped payment, but since they did not follow the proper procedures the city will not be reimbursed by the bond company.

Peter Scott was released on a $50,000 unsecured bond and Robbie Scott on a $75,000 unsecured bond. They are scheduled to next appear in court on September 7th, 2010.

The maximum penalty for a conspiracy conviction is five years in prison, a $250,000 fine, and three years of supervised release. A conviction for making false contractor’s bonds, bids, and public records can bring a maximum sentence of 10 years imprisonment, a fine of $250,000, and three years of supervised release.