Kevin David McGovern, Bribery & Wire Fraud, Montana 2017

A Billings contractor and his companies have been sentenced to pay millions in fines and restitution after being found guilty of bribery and wire fraud in a pay-to-play scheme on the Rocky Boy's Indian Reservation.

Kevin David McGovern, 24 months of imprisonment, $880,000 in restitution (joint and several with his companies), $800,000 in fines, $500 in special assessments, and 2,000 hours of community service. His companies, CMG Construction, Inc. and MC Equipment Holdings, LLC, were ordered to pay a total of $4.58 million in restitution and fines.

The sentencing occurred on June 8, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana. McGovern and his company, CMG Construction, Inc., were convicted of conspiracy, wire fraud, and bribery in November 2016, after a federal trial jury found them guilty of participating in a pay-to-play scheme.

Tony James Belcourt, who was in charge of over $85 million of federal and tribal funds for construction projects on the reservation, required contractors to pay kickbacks and bribes in order to receive contracts and contract payments. Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.

McGovern and his company, CMG Construction, Inc., received three unadvertised, sole-sourced contracts valued at $2.5 million without being required to submit bids to the Chippewa Cree Construction Corporation. In return, Belcourt received $324,333 through a company called MT Waterworks, LLC, which was started with $100,000 of embezzled federal funds from the rural water system.

McGovern was also found guilty of wire fraud and theft in connection with the February 2012 sale of a 'hot plant' to the Chippewa Cree Tribe. The 'hot plant' is a portable industrial paving machine that consists of several interlocking components, including an asphalt tank and silo, drum mixer, conveyor system, and control house. McGovern inflated the purchase price of the hot plant by $380,000, of which $229,000 he paid to Belcourt.

The 'hot plant' sale was part of a larger scheme in which McGovern and his companies paid bribes and kickbacks to Tony Belcourt in exchange for contracts and contract payments.

McGovern and his companies are required to pay a total of $4.58 million in restitution and fines, including $880,000 in restitution, $800,000 in fines, and $500 in special assessments. The sentencing occurred on June 8, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.

Source: https://www.justice.gov/usao-mt/pr/billings-contractor-and-companies-sentenced-two-years-prison-and-458-million-fines-and