A Springfield golf course manager was indicted by a federal grand jury on charges of stealing money from municipal golf courses and using the funds to build houses. Two Wilbraham homebuilders were also indicted as part of the scheme.

Kevin M. Kennedy, 41 of East Longmeadow, owned and operated Kennedy Golf Management Inc. (KGM), and managed Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. He was indicted Thursday by a Springfield grand jury on multiple charges, including three counts of theft concerning programs receiving federal funds, according to a statement from the U.S. attorney’s office.

Kent Pecoy, 62, and Jason Pecoy, 39, were charged with conspiracy to defraud the United States.

KGM was required to collect greens fees and golf cart rental fees on behalf of the city. According to the indictment, Kennedy from 2010 through 2016 allegedly embezzled the 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, prosecutors claim 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.

The indictment also 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.

According to the indictment, Kennedy paid the Pecoys in cash for construction of his homes in East Longmeadow and West Dennis. The Pecoys failed to deposit most of the cash into business bank accounts, according to the indictment, instead distributing the cash directly to vendors and subcontractors.

When they did deposit the cash, the Pecoys allegedly deposited funds in amounts less than $10,000 to avoid filing 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.

In addition to the theft charges, Kennedy was indicted on 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, four counts of filing a false tax return, and one count of conspiracy to defraud the United States.

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.