A former Stoneham police officer, Joseph Ponzo, has been handed a 27-month prison sentence after being involved in a bribery and kickback scheme that exploited the Mass Save energy efficiency program. According to a statement from the U.S. Attorney's Office, Ponzo, 51, of Stoneham, will also be subject to two years of supervised release following his incarceration and must pay $115,528 in restitution together with a $100,000 fine.
In a case involving fraud against Massachusetts homeowners, Ponzo and his brother, Christopher, were accused of conspiring to bribe employees of Company A, which managed contracts under the Mass Save program. This program is funded by an energy efficiency surcharge collected from Massachusetts energy consumers to support energy conservation efforts.
The scheme involved bribing employees to direct lucrative contracts to the Ponzo brothers, with kickbacks including cash and valuable items such as a John Deere tractor and home bathroom fixtures. Over several years, starting in 2013, the brothers were able to divert more than $7 million from the Mass Save program, despite Joseph Ponzo lacking professional experience in the insulation work his company was contracted to perform. To conceal his involvement, Ponzo's spouse’s name was used on company documents.
The case was prosecuted by Assistant U.S. Attorneys Lauren Maynard and Dustin Chao of the Criminal Division. In addition to the bribery scheme, Joseph Ponzo also filed false tax returns from 2016 to 2019, claiming personal expenses as business deductions.
Christopher Ponzo faced similar charges and was similarly sentenced last month to 27 months in prison and ordered to pay a $300,000 fine. Both brothers had previously denied engaging in bribery when questioned by federal agents in April 2022.
