An El Paso contractor, Jack McCager Kidd, has been sentenced to two years in prison for carrying out a fraud scheme against the Bureau of Prisons. In a statement obtained by the Department of Justice, Kidd, who is 72 years old, was also ordered to pay a fine of $5,000 after billing for more natural gas than was actually delivered to two correctional institutions.
The case revolved around two gas pipeline construction projects—one for a high-security prison in Pennsylvania and another for a medium-security facility in Alabama. Kidd's deceit was uncovered when he consistently invoiced the institutions for inflated amounts of natural gas, then further aroused suspicion by refusing to clarify the volumes delivered and the methodology behind his billing calculations. Despite the gravity of the offenses, U.S. Attorney Jaime Esparza, for the Western District of Texas, announced the sentence yesterday which also includes Kidd agreeing to pay over $11 million in restitution.
Kidd's plea, entered on August 30, 2023, was for a lone count of wire fraud although he initially faced 72 counts. His arrest on October 28, 2021, marked the beginning of a legal journey that unveiled a more extensive deception impacting federal funds and resources allocated for the operation of these correctional facilities. The FBI and the Department of Justice Office of the Inspector General Fraud Detection Office were the main investigative forces behind exposing Kidd's fraudulent activities.
