United States Attorney Benjamin B. Wagner announced today that Albert Cipoletti, 62, of Northport, N.Y., was sentenced today by United States District Judge Garland E. Burrell Jr. to six-and-a-half years in prison, to be followed by three years of supervised release, in connection with a scheme to divert more than $20 million from Sacramento County as well as two other businesses: SanDisk Corporation (SanDisk) and The Stanley Works and Stanley Solutions Inc. (Stanley). As part of the sentence, Cipoletti was ordered to pay $19,141,618 in restitution. On October 29, 2010, he pleaded guilty to one count of wire fraud.

This case is the product of an extensive investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation. The County of Sacramento reported the offense to federal law enforcement and has assisted with the investigation. Assistant United States Attorney S. Robert Tice-Raskin is prosecuting the case.

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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.

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