SPRINGFIELD, Mass. (WWLP) – A grand jury on Thursday indicted an East Longmeadow man on more than 10 charges in connection with wire fraud and money laundering at a golf management company in Springfield.
According to the state Department of Justice, 41-year-old Kevin Kennedy Jr. 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.
The indictment states that while Kennedy Jr. 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, allegedly embezzled greens fees and cart fees that were owned by the city by stealing cash directly from the city’s cash register and diverting payments to KGM terminals.
This is said to have happened from 2010 through 2016.
The court added that in an attempt to conceal the scheme, it is further alleged that Kennedy Jr. provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy Jr. 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 court says from 2009 through 2016, Kennedy Jr. conspired with two men, 62-year-old Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, 39-year-old 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 Jr. paid the Pecoy’s in cash and the Pecoy’s 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 Pecoy’s deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoy’s created and maintained separate ledgers documenting Kennedy Jr.’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.
Kent and Jason, both of Wilbraham, were also charged with conspiracy to defraud the United States. Kent issued a statement to 22News refuting the charges against him:
I plan to vigorously defend myself and am confident I shall be exonerated of these charges. I built two homes in 2009 and 2013 for a client who paid for the work partially in cash and partially by check. I sought advice and was informed that it was legal to accept cash payments. I paid taxes on all the net income including the cash, and after investigation by the IRS was not charged with any offense related to my personal taxes or that of Kent Pecoy Homes.
I am being accused by the government of entering into an agreement with the individual to handle the receipt of the cash in a way that would help enable him to avoid paying his taxes on that money—the source of which I was unaware. I categorically deny that such an agreement ever existed.
Over the past three decades, I have built a reputation for integrity while employing hundreds of people, hiring hundreds of subcontractors, purchasing millions of dollars of supplies and have been responsible for generating millions of dollars, which has found its way to the local economy. This matter will not affect the work of Pecoy Homes and our team will continue to provide our clients and partners with the high-quality homebuilding services they have demanded and come to expect.
Kennedy Jr. could spend more than 20 years in prison, more than five years of supervised released and pay over $300,000 in fines if convicted on all the charges he’s been indicted on.
You can read the PDF version of the indictment below.