Jay Man Sentenced to a Year and a Day for 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, 47, of Jay, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to a year and a day in prison and three years of supervised release for federal program fraud. He was also ordered to pay $79,639 in restitution. He pled guilty on April 14, 2016.
According to court records, between May and November 2014, the defendant embezzled $79,639 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.
The case was investigated by HUD, Office of Inspector General and the USDA, Office of Inspector General, with assistance from the Jay Police Department.