Jay Man Pleads Guilty to Federal Program Fraud

Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257

Portland, Maine:  United States Attorney Thomas E. Delahanty II announced that Timothy P. Gallagher, 46, of Jay, Maine, pled guilty today in U.S. District Court to federal program fraud.

According to court records, between May and November 2014, the defendant embezzled about $80,000 from Stanford Management LLC (“Stanford”), a property management company specializing in affordable housing that received millions of dollars in federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Agriculture (“USDA”).  While employed as a full-time construction manager at Stanford, Gallagher set up a competing construction company and paid it to hire subcontractors to perform work on Stanford properties, the job he was being paid a wage to perform.  He also concealed his ownership of the competing construction company from Stanford and the federal agencies.  As a result, he improperly obtained about $80,000.

Gallagher faces up to ten years in prison and a $250,000 fine.  He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The case was investigated by HUD, Office of Inspector General and the USDA, Office of Inspector General, with assistance from the Jay Police Department.