Feds convict local pair for Big Dig fraud

LYNNFIELD – Two local men were among four former managers of North Shore-based Aggregate Industries NE Inc. convicted late Monday by a U.S. District Court jury on conspiracy and fraud charges for delivering substandard concrete to the massive Big Dig highway project.Following a three-week trial, Robert Prosperi, 64, of Lynnfield, a former general manager of Aggregate, was convicted of conspiracy to commit highway project fraud and mail fraud, conspiracy to defraud the government with respect to claims, making false statements in connection with highway projects and mail fraud.Mark Blais, 36, of Lynn, a former dispatch manager at the company, was convicted of making false statements in connection with highway projects and mail fraud.Both now face severe sanctions following the multi-count convictions although no sentencing date has been announced.Acting United States Attorney Michael K. Loucks announced the verdicts Tuesday along with officials from the U.S. Department of Transportation, Office of Inspector General, FBI and Massachusetts State Police.The largest asphalt and concrete supply company in New England, Aggregate’s corporate office is located in Saugus along with one of its quarries. It also has two other quarries in the Greater Lynn area, one in Peabody, the other in Swampscott.The pair were among the six former managers of Aggregate indicted in 2006 on charges they falsified records to hide the inferior quality of the concrete. They had been accused of recycling concrete that was too old or already rejected by inspectors.Two of the six co-conspirators, Keith Thomas, 51, of Billerica, and Gerard McNally, 54, of Rockland, pleaded guilty in July and testified against the remaining four.Along with the two North Shore men, Gregory Stevenson, 53, of Furlong, Pa., and John Farrar, 43, of Canterbury, Conn., were found guilty Monday.According to a press release from the U.S Attorneys office, between 1996 to 2005 Prosperi and Blais, with the other four, were all employed in managerial positions in Aggregate’s concrete division. They were charged with highway project fraud and related offenses for their participation in a scheme to provide concrete to Big Dig projects that did not meet contract specifications and falsified documents to conceal the true nature of the concrete.Between 1996 and 2005 the defendants delivered approximately 5,000 truckloads of non-specification concrete to the Big Dig, each holding approximately 10 yards of concrete. This concrete included recycled concrete that was more than 90 minutes old, concrete that had been adulterated with the addition of excess water, and concrete that was not batched pursuant to Big Dig project specifications.The defendants face stiff penalties: a maximum of 20 years incarceration on each of the mail fraud counts, 10 years incarceration on the conspiracy to make false claims against the United States and five years incarceration on the conspiracy to commit highway project fraud and mail fraud count, as well as on each highway project fraud count.Each count also carries a period of three years of supervised release and a maximum fine of $250,000. The defendants could also face an alternative fine in excess of $10 million which is twice the loss or, in this case, the amount billed to project contractors by Aggregate pursuant to the fraud.Aggregate pleaded guilty in July 2007 and agreed to pay $50 million to the federal and state government to resolve its criminal and civil liabilities in connection with the case. The plea and settlement agreements also required Aggregate to provide up to $75 million in insurance coverage for potential future structural maintenance costs related to their conduct.