Prosecutors unsealed an indictment against the executive director of the La Joya Housing Authority on Friday.

The indictment details a bid rigging scheme involving Juan Jose “J.J.” Garza, 48, of La Joya — who also serves on the La Joya school board — and Armando Jimenez.

Garza rigged the bidding process at the Alamo Housing Authority and Donna Housing Authority by submitting fake bids, according to the indictment.

In July 2012, the Alamo Housing Authority solicited bids for a construction project.

Garza submitted three bids: a fake bid from Crane Construction, a fake bid submitted under the name “Carlos Orillana” and a legitimate-looking bid from Jimenez Construction, according to the indictment.

The Alamo Housing Authority awarded the contract to Jimenez Construction, a company controlled by Armando Jimenez.

Jimenez submitted three invoices for payment.

Garza and subcontractors who worked for him, though, actually completed the work, according to the indictment. The Department of Housing and Urban Development paid $19,950.

In December 2012, the Donna Housing Authority solicited bids for a construction project.

Garza submitted a fake bid from Crane Construction and a legitimate-looking bid from Jimenez Construction, according to the indictment.

The Donna Housing Authority awarded the contract to Jimenez Construction.

Jimenez submitted four invoices for payment, according to the indictment. The Department of Housing and Urban Development paid $24,844.

Prosecutors took the case to a grand jury, which indicted Garza and Jimenez on Wednesday, according to federal court records.

The indictment charged Garza and Jimenez with conspiracy to commit wire fraud and seven counts of wire fraud.

Each count of wire fraud is punishable by a maximum 20 years in federal prison.

The U.S. Marshals Service arrested Garza on Friday. Prosecutors expect him to appear before a federal magistrate judge Monday for an initial appearance, said Assistant U.S. Attorney James Sturgis.

The U.S. Department of Housing and Urban Development Office of Inspector General declined to comment. The U.S. Marshals Service referred a request for comment to the U.S. Attorney’s Office.