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Gary DeVoe, the branch manager for the New England division of an insulation contractor pleaded guilty in Bridgeport federal court for his role in schemes to rig bids and engage in fraud on insulation installation contracts.
This is the first conviction in an ongoing investigation, the Department of Justice announced, with more expected.
“Today’s conviction is the result of a coordinated effort between the Department of Justice and our law enforcement partners to root out collusion and fraud that undermined the competitive process and defrauded hospitals, schools, and other victims out of millions of dollars,” Assistant AG Makan Delrahim of the Department of Justice’s Antitrust Division stated. “Contractors who conspire to deceive and defraud their customers will be prosecuted.”
From October 2011 through March 2018, DeVoe, of Bethlehem, admitted to conspiring with other insulation installation contractors to rig bids and engage in fraud on insulation installation contracts in Connecticut, New York, and Massachusetts.
The antitrust charge carries a maximum sentence of 10 years in prison and a fine of $1 million. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000. DeVoe also agreed to settle the pending forfeiture action on his home for $131,000 and to forfeit all of his seized bank accounts.
“Free and open markets are the foundation of a vibrant economy. For years, (DeVoe) illegally coordinated bids on construction projects in order to enhance his own profits, eliminate competition, and ultimately steal from both public and private customers,” Brian Turner, Special Agent in Charge of FBI’s New Haven Field Office stated. “The FBI is committed to preventing this conduct that restricts all construction firms from receiving an opportunity to bid and receive contracts. Consumers deserve the benefits of competitive prices, higher quality products, services, and greater innovation.”
U.S. Attorney John Durham said that DeVoe and his co-conspirators defrauded his victims out of millions of dollars.
“They cooked up collusive bids, shared bid numbers with their competitors and communicated with co-conspirators via encrypted messaging apps, all in an effort to line their own pockets and their companies’ bottom lines,” he said. “The real victims are the hospitals, universities and businesses that were duped into paying corruptly inflated bids on $45 million worth of insulation jobs throughout New England.”
The investigation into the bid-rigging is ongoing. Check Daily Voice for updates.
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