Date: 08-21-2024

Case Style:

United States of America v. Kent Pecoy

Case Number: 3:19-cr-30058

Judge: Mark G. Mastroianni

Court: The United States District Court for the District of Massachusetts (Hampden County)

Plaintiff's Attorney: The United States Attorney’s Office in Springfield

Defendant's Attorney:

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Description:

Boston, Massachusetts criminal defense lawyer represented the Defendant charged with Fraud Conspiracy
Former Luxury Homebuilder Sentenced for Fraud Conspiracy

Kent Pecoy, 66, of San Marco, Fla., previously of Wilbraham, Mass. was previously indicted in December 2019 along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020.

Kent Pecoy owned and operated Kent Pecoy & Sons, Construction Inc. (KPSC) – a West Springfield-based commercial and luxury home construction company – as well as Sturbridge Development, LLC (Sturbridge) and Legacy General Contractors, LLC (Legacy). KPSCI constructed two homes for Kennedy in East Longmeadow and West Dennis – for which Kennedy paid Kent Pecoy in cash.

From 2009 through 2016, Pecoy conspired with others to conceal income from the IRS by dealing in cash. Specifically, Pecoy received $1,116,900 in cash payments from Kennedy for the purchase and construction of custom-built homes in East Longmeadow and on Cape Cod. Kent Pecoy failed to deposit most of the cash into business bank accounts, and instead distributed the cash directly to vendors and subcontractors. For the payments Kent Pecoy did deposit, he deposited the cash in amounts less than $10,000 to avoid the filing of currency transaction reports.

Kent Pecoy also created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in KPSC’s accounting system to conceal the cash payments.

Additionally, in January 2010, Kent Pecoy and Kennedy made false statements to Charles Schwab Bank on a loan to Kennedy and his wife for the construction of a residence in East Longmeadow in an attempt to conceal $160,000 cash down payment. These false statements included understating the sale price of the residence lot, the price of the construction and the deposit and earnest money paid by Kennedy.

On April 24, 2024, Kennedy was sentenced to 13 months in prison after being convicted by a federal jury for conspiracy to defraud the United States and making a false statement to a federally insured financial institution. Jason Pecoy was convicted in June 2024 of two counts of conspiracy to defraud the United States and is scheduled to be sentenced on Sept. 12, 2024.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office are prosecuting the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.

Outcome:

Defendant was found guilty and sentenced to time served (one day) and two years of supervised release. He was also ordered to pay a $24,000 fine and $35,982 in restitution.

Plaintiff's Experts:

Defendant's Experts:

Comments: