BOSTON — This is an official press release from the U.S. Department of Justice (USAO - Massachusetts), published as received.
BOSTON – The former owner of a now-defunct luxury home building business in West Springfield has been indicted for allegedly obstructing a grand jury’s investigation of his businesses’ cash receipts.
Kent Pecoy, 64, of Wilbraham, was indicted on one count of corrupt concealment of records with intent to impair their use in an official proceeding, one count of obstruction of an official proceeding and one count of count of false statements. Pecoy will appear in federal court in Springfield at a later date.
Pecoy was previously indicted in a separate case in December 2019 along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for allegedly 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. All three defendants have pleaded not guilty in that case and are pending trial.
Pecoy was the sole owner, operator and chief executive officer of Kent Pecoy & Sons, Construction, Inc. (KPSC) – a West Springfield-based commercial and luxury home construction company. According to today’s indictment, between 2013 and 2016, a customer allegedly paid Pecoy and KPSC hundreds of thousands of dollars in cash to construct a home in West Dennis. It is alleged that Pecoy failed to deposit most of the cash into business bank accounts and instead distributed the cash directly to vendors and subcontractors for the project.
On April 29, 2015, a federal grand jury sitting in Springfield issued KPSC a subpoena requiring the production of KPSC’s cash for services records beginning in Jan. 1, 2012. In June 2015, KPSC produced the subpoenaed records which allegedly included documents confirming that KPSC had made numerous, substantial cash payments to the lumber company, but no records indicating KPSC’s own receipt of cash. It is alleged that in response to a request for additional records concerning KPSC’s cash receipts, Pecoy falsely stated that KPSC had no additional records concerning KPSC’s cash receipts.
During a search of KPSC’s business premises in April 2016, it is alleged that numerous documents were discovered relating to KPSC’s receipt and distribution of cash from the customer home construction project, including payment ledgers, contracts, project check lists and e-mails exchanged between Pecoy and the project manager.
The charges of corrupt concealment of records with intent to impair their use in an official proceeding and obstruction of an official proceeding each provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, at least three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Rollins’ Springfield Branch Office and Trial Attorney Eric B. Powers of the Justice Department’s Tax Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
