A luxury homebuilder who is already facing fraud charges has been indicted for allegedly obstructing a grand jury investigation.
Kent Pecoy, 64, of Wilbraham, was indicted earlier this month 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 false statements, the U.S. attorney’s office said in a statement.
Pecoy was the owner and CEO of Kent Pecoy & Sons Construction Inc., a West Springfield-based commercial and luxury home construction company that is now defunct.
Along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, Pecoy was previously indicted in a separate case about three years ago for allegedly conspiring to defraud the U.S. by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The three defendants have pleaded not guilty in that case and are awaiting trial.
Prosecutors allege that Pecoy and KPSC received hundreds of thousands of dollars in cash to construct a home in West Dennis. Pecoy allegedly failed to deposit most of the cash into business bank accounts and instead distributed the cash directly to vendors and subcontractors for the project.
According to the most recent indictment, a federal grand jury in Springfield issued KPSC a subpoena to produce KPSC’s cash-for-services records beginning in Jan. 1, 2012. KPSC produced the 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, according to the U.S. attorney’s statement.
Prosecutors allege 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, numerous documents were allegedly discovered relating to KPSC’s receipt and distribution of cash from the customer home construction project, the statement said. The documents allegedly included payment ledgers, contracts, project check lists and e-mails exchanged between Pecoy and the project manager.
