Gaithersburg, MD – Former West Virginia state official Paul Prendergast was sentenced in October 2009 to 18 months and one day in federal prison, followed by three years of supervised release, for accepting illegal gratuities and engaging in corrupt practices related to asbestos and lead abatement contracts. The case, investigated by federal authorities, revealed a pattern of abuse of power and self-enrichment while Prendergast held a position of public trust.
From 1998 to 2003, Prendergast served as an occupational health and safety coordinator within the West Virginia Department of Administration, General Services Division (GSD). His responsibilities included receiving and evaluating bids for asbestos and lead abatement projects, wielding significant influence over contract awards and payment approvals. Evidence presented during the investigation showed Prendergast routinely favored two Maryland-based corporations – affiliated companies jointly operated and managed – in the bidding process.
The scheme involved Prendergast unlawfully sharing confidential bid information received from competing abatement firms with the favored contractors. This insider knowledge allowed them to undercut competitors, securing contracts with the State of West Virginia. Prendergast not only awarded these contracts but also authorized payments, all while simultaneously receiving undisclosed benefits from the companies. Between August 1998 and January 2003, these companies secured numerous abatement contracts with GSD.
The financial incentives were substantial. Prendergast received direct payments totaling $11,000 in three separate checks between 2000 and 2003. Further compounding the corruption, while still employed by the state, Prendergast initiated a business proposal for a joint venture involving a West Virginia landfill, anticipating a share of the future profits. Immediately upon leaving GSD in 2003, he was hired by one of the contracting companies at a salary nearly triple his state income – $85,000 annually. An additional $55,000 was funneled to Prendergast through a subcontractor between December 2003 and December 2004.
Legal Ramifications
Prendergast was initially charged on September 25, 2007, with one count of obstruction under 18 U.S.C. § 1952, a federal statute prohibiting gratuities and corrupt payments to public officials. He ultimately pled guilty to the charge on October 22, 2009. In addition to his prison sentence and supervised release, Prendergast was ordered to pay a $3,000 federal fine. The case highlights the potential for corruption within government contracting and the importance of rigorous oversight to ensure fair and transparent bidding processes.
Key Facts
- Defendant: Paul Prendergast
- Location: West Virginia (contracts awarded), Maryland (contractor base, Prendergast residence)
- Years Active: 1998 – 2005
- Statute Violated: 18 U.S.C. § 1952 (Gratuities and corrupt payments to public officials)
- Sentence: 18 months and one day imprisonment, 3 years supervised release, $3,000 fine
- Scheme: Prendergast leaked confidential bid information to favored contractors in exchange for money and future employment.
- Total Undisclosed Income: Approximately $150,000 (direct payments, inflated salary, subcontractor funds)
GrimyTimes will continue to follow this case and report on any further developments.
Source: EPA ECHO Enforcement Case Database
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