EL PASO, Texas – In a stunning reversal of fortune, Jack McCager Kidd, the 72-year-old owner of an El Paso-based construction company, was meted out justice with a 24-month prison sentence and a $5,000 fine for his fraudulent activities against two federally funded correctional institutions.
According to court documents, Kidd’s enterprise falsely invoiced the Bureau of Prisons for more natural gas than what was actually delivered. The deceitful practice continued over multiple months, with Kidd refusing to disclose critical information about the gas delivery and his invoice calculations.
The 72 counts of wire fraud Kidd faced ultimately culminated in a guilty plea on August 30, 2023, to one count. His penance includes not only the prison term but also an exorbitant restitution payment of $11,397,374, which he is required to compensate the Bureau of Prisons for.
US Attorney Jaime Esparza for the Western District of Texas broke the news, underscoring the gravity of Kidd’s offense against federal correctional institutions. The Department of Justice Office of the Inspector General Fraud Detection Office and the FBI were instrumental in investigating this case, which has sent a clear message about the consequences of fraud within government contracts.
Assistant U.S. Attorneys Chris Skillern and Sarah Valenzuela led the prosecution, ensuring that Kidd faced the full brunt of the law for his fraudulent endeavors.
This conviction marks another victory in the ongoing battle against white-collar crime and public corruption. Kidd’s sentence serves as a stark reminder to those who might consider defrauding federal institutions: justice will not be served lightly.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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