Mass. fireplace chief going through warmth after his non-public firm obtained $5 million on the town contracts

A Bay State fireplace 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 stated on Thursday.
The fireplace 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 fundamental undertaking — for a complete of about $5.4 million.
The fireplace chief was reportedly warned by the state earlier than he did enterprise with the city.
“Shepherd entered into the contracts regardless of having been issued a letter from the Fee’s Enforcement Division elevating battle of curiosity regulation considerations,” 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 the way to adjust to the regulation.
Shepherd was additionally informed to contact the Fee’s Authorized Division each time he thought-about 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 battle of curiosity regulation prohibits municipal staff from having a monetary curiosity 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 by which the municipality is a celebration or has a direct and substantial curiosity.
“The Order alleges that Shepherd violated these prohibitions by having a monetary curiosity within the contracts for the bridge alternative and water fundamental initiatives, by appearing on behalf of Shepco in relation to these contracts, and by receiving funds by means of Shepco’s work on these 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 in opposition to Shepherd inside 90 days.
