For Immediate Release - June 25, 2010

Methuen Contractor Indicted For Manufacturing False Bids

Won Nearly $100,000 of Concrete Work from City of Methuen

A Methuen contractor was indicted this afternoon by an Essex County Grand Jury, charged with 12 counts of manufacturing false bids and 12 counts of presenting false claims in order to win work from the City of Methuen.

Christopher D. Medugno, 50, of 15 Brentwood Lane, will be arraigned within the next two weeks in Salem Superior Court. Each count carries up to five years in state prison and a $10,000 fine.

As a result of winning the bids, Medugno did concrete work for the Methuen School Department, the Methuen Housing Authority, and the city's Department of Public Works. The alleged bid-rigging took place from 2004 to 2009, and the total amount Medugno received as a result of the allegedly manufactured bids was $95,545.

In order to win the bids, Medugno would allegedly forge two bids from competitors - who weren't even bidding on the job - and then submit his own bid, which would be lower than theirs.

The ongoing investigation is being conducted by the Office of Essex District Attorney Jonathan W. Blodgett, the FBI, Office of Massachusetts Inspector General Gregory Sullivan, and Methuen Police detectives.

More indictments of others allegedly complicit in the process are expected, according to Essex First Assistant District Attorney John T. Dawley, who will prosecute the case.

"The integrity of the bidding process cannot be undermined," said District Attorney Blodgett. "It seriously erodes the public's trust in government, and in the end it is the taxpayers who foot the bill for any alleged wrongdoing."