SPRINGFIELD, Mass. — A Michigan man has pleaded guilty in federal court to orchestrating a fraud scheme that targeted a Northampton-based construction company, diverting labor, materials and equipment for personal use, according to authorities.
Jonathan McCormack, 41, of Lapeer, entered a guilty plea to one count of conspiracy to commit wire fraud and five counts of wire fraud during a hearing in U.S. District Court in Springfield.
Prosecutors said McCormack used his role as a project supervisor for BluRoc LLC, along with his ownership of JDM Site Services LLC, to carry out the scheme between April and August 2020.
According to court documents, McCormack directed BluRoc employees — including his brother — to perform renovation work on a private hunting lodge in Lake City while falsely recording their time as if they were working on company projects.
Authorities said McCormack approved the falsified time entries within BluRoc’s system, ensuring employees were paid by the company for work unrelated to its operations.
The unauthorized work reportedly included installing timber mats and using materials taken from a BluRoc job site without payment. Prosecutors also alleged that on April 4, 2020, McCormack falsely logged time for himself and several crew members as work performed on projects in Indiana, when in reality they were working at the Michigan property.
As part of the plea agreement, McCormack has agreed to forfeit six snowmobiles and pay $98,087 in restitution to BluRoc. He is scheduled to be sentenced on Aug. 17.
Federal officials noted that the wire fraud charge carries a potential sentence of up to 20 years in prison, while the conspiracy charge carries a maximum sentence of five years.
The case highlights ongoing risks within the construction industry related to internal fraud and misuse of company resources, particularly when oversight mechanisms fail to detect unauthorized activity.
While no additional quotes were included in the court filing, prosecutors emphasized that the scheme involved deliberate misrepresentation of work hours and improper use of company assets over several months.
The investigation underscores the importance of internal controls and accountability within construction operations, especially as projects often involve multiple job sites, subcontractors and resource allocations that can be difficult to track without rigorous oversight.
Cases like this also illustrate how financial misconduct can impact not only company finances but also project timelines and workforce management.
Originally reported by John Budenas in WWLP.
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