Bean Town Times

A former Stoneham police officer and his brother, an electrical contractor, have admitted to participating in a bribery scheme involving Mass Save contracts. Joseph Ponzo, 51, of Stoneham, and Christopher Ponzo, 50, of North Reading, pleaded guilty to charges including conspiracy to commit honest services wire fraud and making false statements to government officials. Additionally, Joseph Ponzo admitted to filing false tax returns between 2016 and 2019. Their sentencing is set for February 2025 by U.S. District Court Judge Nathaniel M. Gorton.

Massachusetts law mandates utility companies collect energy efficiency surcharges from consumers. These funds support programs like Mass Save that promote energy conservation projects through selected contractors at no cost or reduced cost to customers.

The Ponzos were involved in paying bribes and kickbacks to employees of Company A in exchange for securing millions in Mass Save contracts. The payments included cash bribes as well as items such as a John Deere tractor and home fixtures.

From 2013 to 2017, Christopher Ponzo paid Associate 1 $1,000 weekly and occasionally more substantial sums on behalf of Joseph Ponzo. This arrangement helped Joseph establish Air Tight as a shell company for insulation work under the Mass Save program without professional experience in the field.

After Associate 1's departure from Company A in 2017, the brothers enlisted Associate 2 into their scheme until approximately 2022.

Joseph Ponzo also filed false tax returns by disguising personal expenses as business deductions using his company credit card at various stores for personal purchases.

In April 2022 interviews with federal agents, both brothers denied any involvement in bribery payments despite evidence to the contrary.

The charges they face carry potential sentences of up to twenty years for wire fraud-related offenses and additional penalties for other crimes. Sentencing will be determined based on U.S. Sentencing Guidelines.

Acting United States Attorney Joshua S. Levy announced the plea alongside Jodi Cohen from the FBI's Boston office and Harry Chavis Jr., Special Agent with IRS Criminal Investigations in Boston. Assistant U.S. Attorneys Lauren Maynard and Dustin Chao are handling prosecution duties.