US: Insulation contractor branch manager pleads guilty to bid rigging and fraud

Gary DeVoe, Branch Manager for the New England Division of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in schemes to rig bids and engage in fraud on insulation installation contracts, marking the first conviction in this investigation, the Department of Justice announced.

According to court documents, from at least as early as October 2011 and continuing until as late as March 2018, DeVoe, of Bethlehem, Connecticut, conspired with other insulation installation contractors to rig bids and engage in fraud on insulation installation contracts in Connecticut, New York, and Massachusetts.  Insulation installation contractors install insulation around pipes and ducts on renovation and new construction projects at universities, hospitals, and other public and private entities.  In addition to his guilty plea, DeVoe has agreed to pay restitution.

“Today’s conviction is the result of a coordinated effort between the Department of Justice and our law enforcement partners to root out collusion and fraud that undermined the competitive process and defrauded hospitals, schools, and other victims out of millions of dollars,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “Contractors who conspire to deceive and defraud their customers will be prosecuted.”