West Springfield's once renowned luxury home builder Kent Pecoy has been sentenced for engaging in a fraudulent scheme that targeted the federal government and financial institutions. Pecoy, 66, was implicated in crafting deceptions aimed at concealing substantial cash transactions involved in the construction of lavish homes, an act for which he has received a sentence of time served and two years of supervised release. The formal announcement coming out of the U.S. Attorney's Office detailed that he is also mandated to pay a fine and restitution amounting to a combined sum of $59,982.
In the unraveling of this elaborate fraud, Pecoy, alongside his son Jason Pecoy and accomplice Kevin M. Kennedy, former owner of a golf management company, were accused of hiding cash payments waved through in home construction deals. These under-the-table dealings led to Pecoy's indictment in December 2019, followed by a superseding indictment in January 2020. Presiding over the case, U.S. District Court Judge Mark G. Mastroianni, sentenced Pecoy to a surprisingly brief period of custody and two years under the government's watchful eye, according to a statement from the Department of Justice.
The DOJ press release gives an account of Pecoy's former company Kent Pecoy & Sons, Construction Inc. and its involvement in fabricating two homes for Kennedy both in East Longmeadow and on Cape Cod. It was through the course of nearly seven years that Pecoy conspired to circumvent the IRS by eschewing the deposit of over a million dollars into business accounts, with the intent of avoiding currency transaction report filings. His machinations extended into the realm of creating separate financial ledgers, as well as falsified contracts and accounting entries, all for the purpose of masking the cash flow.
Adding to his list of malpractices, in 2010 Kent Pecoy and Kennedy were found to have disseminated false statements to Charles Schwab Bank for a loan application, intentionally played down the figures involved in a property sale and the associated construction costs. This manipulation saw the masking of a $160,000 cash down payment — a deceptive move that has led to Kennedy facing a 13-month prison term after a federal jury verdict. Jason Pecoy mirrors his father's fate, with a conviction for conspiracy to defraud the United States and is scheduled for sentencing next month, the Justice Department's announcement further revealed.
This case resonates with seriousness, as it involves direct interference with the financial integrity of both government and lending institutions. Acting U.S. Attorney Joshua S. Levy, paired with IRS Criminal Investigation Special Agent in Charge Harry Chavis Jr., have heralded the legal proceedings, ensuring that justice is dispensed appropriately. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches, along with Trial Attorney Eric B. Powers from the Justice Department’s Tax Division, are credited with prosecuting this elaborate case of financial deceit.
