PORTLAND, Maine — A Jay man pleaded guilty Thursday in U.S. District Court to federal program fraud, according to the U.S. attorney’s office.
By pleading guilty, Timothy P. Gallagher, 46, admitted that between May and November 2014, he embezzled about $80,000 from Stanford Management LLC, a property management company specializing in affordable housing.
The firm received millions of dollars in federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture, according to a press release issued Thursday.
While employed as a full-time construction manager at Stanford, Gallagher set up a competing construction company and paid it to hire subcontractors to perform work on Stanford properties, the job he was being paid a wage to perform, the release said. He also concealed his ownership of the competing construction company from Stanford and the federal agencies.
Gallagher faces up to 10 years in prison and a $250,000 fine.
A sentencing date has not been set.
He remains free on $10,000 unsecured bail.