MCALLEN, Texas — The 48-year-old executive director of the housing authority in a small Rio Grande Valley town and a construction company owner have been indicted on federal charges related to what prosecutors say was a bid rigging scheme.

Juan Jose Garza, who runs the La Joya Housing Authority, and 52-year-old Armando Jimenez made initial appearances Monday before a federal magistrate in McAllen. They both were arrested Friday.

Prosecutors say the men from July 2012 through March 2013 engaged in bid rigging for construction contracts with housing authorities in nearby Alamo and Donna in Hidalgo County.

According to the indictment, they submitted false bids so Jimenez’s company would be awarded construction projects, then Jimenez falsely submitted invoices for work he claimed as his firm’s but actually was done by subcontractors working for Garza.