BOSTON – A federal grand jury in Springfield returned an indictment today charging a Springfield golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
Kevin M. Kennedy, 41 of East Longmeadow, was indicted on three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, and four counts of filing a false tax return, and one count of conspiracy to defraud the United States. Kent S. Pecoy, 62, and Jason Pecoy, 39, both of Wilbraham, were also charged with conspiracy to defraud the United States.
According to the indictment, Kennedy owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect greens fees and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys 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.
The wire fraud and money laundering charges provide for a sentence of up to 20 years in prison, five years of supervised release, and a fine of $250,000. The theft and monetary transactions charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. The tax fraud charges provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. The conspiracy charges provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.