- David A. Wilson, Executive Director
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Don Siriani, Public Education and Communications Division Chief
Boston, MA — The State Ethics Commission’s Enforcement Division issued an Order to Show Cause today alleging that Townsend Fire Chief Gary Shepherd violated the conflict of interest law by contracting with the town, including for a $4.7 million water main project, and by acting for and being paid by his private company in relation to town projects.
The Order alleges that Shepherd, who operates the private company Shepco, Inc., entered into a $754,333 contract with the Town of Townsend for a bridge replacement project in December 2022, then entered into a $4.7 million contract with the town for a water main project in March 2023, gaining about $5.4 million as a result of his conflict of interest law violations. According to the Order, Shepherd entered into the contracts despite having been issued a letter from the Commission’s Enforcement Division raising conflict of interest law concerns.
According to the Order, the November 30, 2022 letter from the Enforcement Division advised Shepherd that he needed a conflict of interest law exemption to contract with the town and told him how to comply with the law. Shepherd was also advised to contact the Commission’s Legal Division whenever he considered contracting with the town, the Order states. The Enforcement Division alleges that Shepherd did not take any action in response to the letter.
The conflict of interest law prohibits municipal employees from having a financial interest in a contract made by the municipality they serve. The law also prohibits municipal employees from acting as agent for or being paid by anyone other than the municipality in relation to a matter in which the municipality is a party or has a direct and substantial interest. The Order alleges that Shepherd violated these prohibitions by having a financial interest in the contracts for the bridge replacement and water main projects, by acting on behalf of Shepco in relation to those contracts, and by receiving payments through Shepco’s work on those contracts.
On June 18, the Commission’s Enforcement Division issued an Order to Show Cause alleging that Townsend Water Department Superintendent David Vigeant violated the conflict of interest law by providing Shepherd plans for the water main project before the town put the project out to bid.
Pursuant to the Commission’s Enforcement Procedures, the Enforcement Division files an Order to Show Cause against a subject following the Commission’s finding of reasonable cause to believe the subject violated the conflict of interest law. Before filing the Order to Show Cause, the Enforcement Division gives the subject the opportunity to resolve the matter through a disposition agreement. The Commission will schedule a public hearing on the allegations against Shepherd within 90 days.
The Commission is authorized to impose a civil penalty of up to $10,000 for each violation of the conflict of interest law.
The Commission encourages public employees to contact the Commission’s Legal Division at 617-371-9500 for free advice if they have any questions regarding how the conflict of interest law may apply to them.
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