TEXARKANA, Texas–The ringleader of a scheme involving bid rigging at Red River Army Depot pleaded guilty last week to conspiracy to defraud the United States.
Jimmy Scarbrough, 70, is accused of accepting hundreds of thousands in money orders, collectible firearms and antique car repairs while the equipment mechanic supervisor at RRAD, according to court records.
He pleaded guilty Aug. 22 at a hearing before District Judge Robert Schroeder III in a federal court in Texarkana, Texas.
Scarbrough told vendors what to bid, including the item, the quantity, and the price. By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to select vendors, including Jeffrey Harrison and Justin Bishop, while maintaining the appearance of a competitive bidding process, according to an earlier press release from the U.S. Attorney’s Office for the Eastern District of Texas.
Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, causing the depot to pay the vendors. However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items, the statement said.
Scarbrough agreed at his plea hearing to forfeit a 1951 Ford F1 truck and to accept a money judgment against him in an amount to be determined by the court, court documents said. He also faces a possible fine up to $250,000 and up to five years in federal prison, according to a notice of punishment.
Harrison and Bishop, both vendors, pleaded guilty to bribery in 2021 and are scheduled for sentencing next month. Devin McEwin and Louis Singleton have pleaded guilty to bribery as former RRAD officials and are set for sentencing next month.
Carl Hall pleaded guilty to bribery involving Singleton, and John Leveritt pleaded guilty to bid rigging, at hearings in July before Magistrate Judge James Boone Baxter. Their cases have not been scheduled for sentencing.
Aaron Stephens, a vendor, pleaded not guilty to bid rigging and conspiracy to defraud the government at a hearing on Aug. 2 before Baxter. His case is set for trial in February, court records show.
All of the defendants are currently free on unsecured appearance bonds.
