Man accused of defrauding Massachusetts employer of nearly $1 million, buying luxury hunting lodge
A Michigan man is accused of defrauding his Massachusetts employer of nearly $1 million, and then using the money to buy a luxury hunting lodge and six recreational vehicles.
Jonathan McCormack, 39, of Lapeer, Mich., was indicted by a federal grand jury on 17 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of a value greater than $10,000, acting U.S. Attorney Joshua Levy said in a statement. He will appear in federal court in Springfield at a later date.
According to the indictment, McCormack was employed as a project supervisor for BluRoc LLC., a construction company based in Northampton. McCormack also owned and operated JDM Site Services LLC, a Michigan-based company that rented equipment to BluRoc.
Prosecutors allege that between January 2019 through January 2021, McCormack devised a scheme to defraud BluRoc by submitting fake JDM invoices for purported equipment usage, and by diverting BluRoc labor, equipment and materials for his own personal use and benefit.
McCormack allegedly entered fraudulent employee time and JDM Site Services equipment usage data in BluRoc’s tracking system. Prosecutors allege that he overstated the number of hours worked by employees, including himself, on BluRoc projects, and the number of hours JDM equipment was actually used, Levy said.
McCormack also allegedly emailed false JDM invoices to BluRoc personnel for inflated amounts that substantially overstated the number of hours the equipment was actually used, Levy said. He then allegedly deposited payments received for the false invoices into a JDM bank account, and used the proceeds for his own personal use and benefit.
Prosecutors allege McCormack used the money to buy and renovate a luxury hunting lodge; make improvements to his personal home; buy recreational vehicles including snowmobiles; and repay a loan to his uncle.
McCormack is also accused of directing BluRoc workers to work at the luxury hunting lodge he purchased, including clearing an area between the lodge and an adjacent property owned by his uncle; laying timber mats that McCormack had stolen from a BluRoc worksite; and haying and seeding the area with material that he had also stolen from a BluRoc worksite, Levy said.
McCormack then allegedly electronically approved the workers’ time and equipment usage in BluRoc’s tracking system so that BluRoc, rather than McCormack, paid for their work.
The indictment seeks forfeiture of $920,716, the hunting lodge and six Polaris recreational vehicles.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of engaging in monetary transactions in criminally derived property of a value greater than $10,000 provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000.
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
