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May 3, 2019

Feds: Bid rigging conspiracy results in second guilty plea

By Michelle Tuccitto Sullo

A second executive from an Oxford contracting company has pleaded guilty to rigging bids in connection with insulation contracts.

Michael S. Flynn of Ridgefield, co-owner of BC Flynn Contracting Corp., entered the guilty plea to conspiracy to restrain trade and commit wire fraud Wednesday in U.S. District Court in Bridgeport.

Federal prosecutors said this second conviction is part of an ongoing investigation into a $45 million scheme that induced its victims to pay more than they should have for projects.

Connecticut U.S. Attorney John H. Durham said victims included hospitals, universities and businesses throughout New England. The government has not identified any specific victims of the alleged scheme.

According to Flynn’s company’s website, it has been involved in projects at Yale University, the University of Connecticut, UConn Health Center, and the Yale Cancer Center.

“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” Durham said in an announcement.

In early April, Gary DeVoe of Bethlehem, branch manager for the company’s New England Division, pleaded guilty also. Both men await sentencing.

The company has offices on Morse Road in Oxford and in New York state.

Flynn was accused of conspiring to rig bids on contracts for the installation of insulation around pipes and ducts on construction projects. According to the government, the conspirators discussed and agreed on bids which inflated prices by at least 10 percent. They allegedly used burner phones and an encrypted disappearing messaging app to hide what they were doing.

Federal prosecutors portrayed Flynn as an “organizer or leader of the scheme” in court documents.

Flynn faces potential prison time and fines at his sentencing, which is scheduled for August. While he faces a maximum of 20 years in prison, guidelines call for him to be sentenced to between 63 and 78 months in prison. He faces a potential fine of between $25,000 and $250,000, according to the plea agreement.

Flynn has agreed to immediately pay $4.5 million in restitution to victims, and the court may order additional restitution at sentencing. Flynn will forfeit all of his seized bank accounts and settle the government’s pending forfeiture action on his Ridgefield home for $327,500, according to the U.S. Attorney’s office.

Flynn’s attorney, Stephan Seeger of Stamford, said his client has been released on bond pending his sentencing.

“Our focus is to move forward with this case and make everyone whole,” Seeger said. “Mr. Flynn has done a lot for charity in the past and would like to put this behind him as soon as possible.”

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com

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