Press Release  OIG Investigation: Former Hopkinton Parks & Rec Director Violated Procurement Laws

Hopkinton, MA — An investigation by the Office of the Inspector General (OIG) has found that a former director of the Hopkinton Parks and Recreation Department intentionally circumvented state procurement laws and violated state laws and town policies related to handling cash. The OIG also found that the Parks and Recreation Department lacked internal controls to prevent fraud, waste, and abuse of revenues from a town concession stand.

“The Commonwealth’s governmental bodies must act as good stewards of public assets in conducting procurements and accounting for cash revenues,” Inspector General Jeffrey S. Shapiro wrote in a letter to Hopkinton Town Manager Elaine Lazarus, Select Board Chair Joe Clark, and Parks and Recreation Commission Chair Daniel Terry.

The investigation, which was prompted by multiple calls to the OIG’s Fraud Hotline, found that former Parks and Recreation Department director Jay Guelfi purposefully evaded state procurement laws in making an unwritten “handshake agreement” with a local food truck vendor to operate a concession stand at the town’s Fruit Street Athletic Fields.

Additionally, the OIG found that Guelfi did not turn over the cash generated from the concession stand to the town’s treasurer as required by law.   Rather, he purportedly kept some of the cash in his desk and used at least some of it to reimburse employees for purchases made for the department, in violation of the town’s cash handling policies. A full accounting of all money received by Guelfi and where it went could never be reconstructed due to insufficient records.

“Handshake deals and desk drawers full of cash are not only clear violations of state law and local policies, but also are an abuse of public resources,” IG Shapiro said. “Those conducting the public’s business must proceed fairly, openly, and in accordance with the law. Failure to do so erodes the public’s confidence and significantly increases the likelihood of fraud, waste, and abuse.”

Based on its investigative findings, the OIG outlined specific steps the town must take to ensure that its departments – regardless of whether they are headed by separately elected boards or commissions – comply with state procurement laws and adhere to the town’s cash handling policies. The OIG directed the town to respond within 30 days with its plans to implement the letter’s recommendations.

“The OIG appreciates the individuals who contacted our fraud hotline about this conduct and I encourage anyone who suspects fraud, waste, or abuse of public resources to notify my office. All complaints are confidential and are reviewed by an investigator,” IG Shapiro said.

The Office of the Inspector General (OIG) is an independent agency that prevents and detects fraud, waste, and abuse of public funds and public property on the state and municipal levels.  If you suspect fraud, waste, or abuse of public resources, you are encouraged to contact the OIG’s confidential fraud hotline at 1-800-322-1323 or IGO-FightFraud@mass.gov.

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