A Bay State hearth chief is within the sizzling seat after his non-public firm obtained greater than $5 million from city contracts, based on the State Ethics Fee.
Townsend Hearth Chief Gary Shepherd is accused of violating the state’s battle of curiosity regulation, the Massachusetts fee mentioned on Thursday.
The hearth chief allegedly violated state regulation when he represented his non-public firm in enterprise with the city, and had monetary pursuits on the town contracts.
Shepherd, who operates the non-public firm Shepco, Inc., first entered right into a $754,333 contract with the city for a bridge alternative undertaking. Then, his firm agreed to a $4.7 million contract with the city for a water most important undertaking — for a complete of about $5.4 million.
The hearth chief was reportedly warned by the state earlier than he did enterprise with the city.
“Shepherd entered into the contracts despite having been issued a letter from the Commission’s Enforcement Division raising conflict of interest law concerns,” the Ethics Fee wrote.
Again on Nov. 30, 2022, the Ethics Fee in a letter from the Enforcement Division warned Shepherd that he wanted a battle of curiosity regulation exemption to contract with the city. The Fee additionally and informed him easy methods to adjust to the regulation.
Shepherd was additionally informed to contact the Fee’s Authorized Division at any time when he thought of contracting with the city. The Enforcement Division alleges that Shepherd didn’t take any motion in response to the letter.
The primary contract was in December 2022, and the second undertaking was in March 2023.
“The conflict of interest law prohibits municipal employees from having a financial interest in a contract made by the municipality they serve,” the Ethics Fee wrote. “The regulation additionally prohibits municipal staff from appearing as agent for or being paid by anybody aside from the municipality in relation to a matter through which the municipality is a celebration or has a direct and substantial curiosity.
“The Order alleges that Shepherd violated these prohibitions by having a financial interest in the contracts for the bridge replacement and water main projects, by acting on behalf of Shepco in relation to those contracts, and by receiving payments through Shepco’s work on those contracts,” the fee added.
The Ethics Fee can impose a civil penalty of as much as $10,000 for every violation of the battle of curiosity regulation.
The Enforcement Division will give him the chance to resolve the matter by means of a disposition settlement. The fee plans to schedule a public listening to on the allegations towards Shepherd inside 90 days.
