A former Stoneham police officer will spend 27 months in prison after he “chose greed over integrity” by conducting a bribery and kickback scheme that diverted cash from more than $36 million in Mass Save energy program contracts.
Federal judge Nathaniel M. Gorton handed the sentence to Joseph Ponzo, 51, of Stoneham, on Friday and ordered the former cop to pay $115,528 in restitution and a $100,000 fine.
The 27-month sentence will be followed by two years of supervised release.
“Joseph Ponzo was a sworn officer, who pledged an oath to uphold the law, not violate it. However, he chose greed over integrity,” US Attorney Leah B. Foley said in a statement on Friday. “Joseph Ponzo’s greed came at the cost of consumers who were left paying the bill. A prison sentence is the price he will now pay for taking bribes and kickbacks.”
Ponzo is accused of teaming up with his brother and co-conspirator Christopher Ponzo to bribe an unnamed associate at a lead vendor for the Mass Save program controlling millions of dollars in contracts.
Mass Save is an initiative funded by a state-mandated electric bill surcharge in which regional energy companies, including National Grid and Eversource, work with the Department of Energy Resources to promote energy efficiency in the Bay State.
The hundreds of millions of dollars in Mass Save energy efficiency funds are disbursed to “lead vendors,” one of which the unnamed associate works for. These companies are tasked with contracting energy conservation and improvement work for consumers
“We are definitely delinquents!!!! Ill (sic) let the pro handle the invoices!!” Joseph Ponzo allegedly emailed his brother Christopher and the unnamed associate in May 2013 as they planned contract invoices.
The bribes started at $1,000 a week in 2013 and snowballed into $10,000 bonuses and expensive gifts including an Apple MacBook, a John Deere tractor with a backhoe and loader, home bathroom fixtures and free electrical work, among other things, according to Foley’s office.
Ponzo pleaded guilty last November to one count of conspiracy to commit honest services wire fraud; 24 counts of honest services wire fraud; and one count of making false statements to government officials.
The ex-cop, indicted by a federal grand jury in January 2023 along with his brother, also pleaded guilty to four counts of causing false tax returns to be filed with the Internal Revenue Service from 2016 to 2019.
In the scheme, Christopher Ponzo, an electrician, started bribing the associate to ensure the vendor granted his company, CAP Electric, millions in contract work.
Joseph Ponzo was looped into his own contracts when the other two allegedly helped him create an insulation company, Air Tight, under his spouse’s name. Ponzo and his spouse have no experience in energy efficiency insulation.
The associate was allegedly paid extra to help out with the alleged Air Tight scheme, including helping it to become an approved Mass Save contractor and to handle billing and invoicing for projects.
Joseph Ponzo is said to have collected over $7 million in contracts under the Mass Save program, according to Foley’s office.
“Every year, Massachusetts homeowners spend millions of dollars to fund energy conservation projects for consumers,” FBI Boston Special Agent in Charge Jodi Cohen said in a statement. “Joseph Ponzo and his brother cheated them by shelling out hundreds of thousands of dollars in a steady stream of bribes and kickbacks to an insider who steered contracts their way, ignoring all ethical boundaries.”
The Stoneham Police Department placed Ponzo on administrative leave in April 2022 before suspending him that May. Ponzo resigned a day after being suspended.
“As law enforcement professionals, we are held to the highest standards of conduct and integrity,” Police Chief James O’Connor said in a statement. “The actions of Mr. Ponzo are a clear violation of those principles and do not reflect the values of the Stoneham Police Department.”