Michigan Man Indicted for $1M Northampton Construction Scam

BOSTON – In a brazen scheme to defraud a Northampton construction company of nearly $1 million, Jonathan McCormack, 39, of Lapeer, Mich., has been indicted by a federal grand jury in Springfield, Mass.

According to the indictment, McCormack, who was employed as a project supervisor for BluRoc, LLC, a construction company based in Northampton, Mass., devised a scheme to defraud BluRoc by submitting materially false invoices for equipment usage and diverting company assets for his own personal use.

The indictment alleges that between January 2019 and January 2021, McCormack submitted false invoices for inflated amounts of equipment usage, deposited payments into a JDM bank account, and used the proceeds for personal expenses, including purchasing a luxury hunting lodge, making improvements to his residence, and buying recreational vehicles.

Mccormack also allegedly directed BluRoc workers to conduct work at the luxury hunting lodge, including clearing land, laying timber mats, and seeding the area with stolen materials. He then electronically approved the workers’ time and equipment usage, causing BluRoc to pay for their work.

The indictment seeks forfeiture of $920,716, the hunting lodge, and six Polaris recreational vehicles. McCormack faces charges of 17 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of a value greater than $10,000.

Each charge carries significant penalties, with wire fraud providing for up to 20 years in prison, up to three years of supervised release, and a fine of $250,000. Engaging in monetary transactions in criminally derived property carries a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000.

McCormack’s alleged scheme was uncovered through an investigation led by the FBI, IRS, and other federal agencies. Assistant U.S. Attorneys Neil Desroches and Steven H. Breslow will prosecute the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is a stark reminder of the devastating consequences of white-collar crime, where individuals exploit their positions of trust to line their own pockets. The authorities will continue to pursue justice in this case and others like it.