Stoneham police officer, brother indicted, charged with defrauding $36M from Massachusetts energy efficient funds

A Stoneham Police officer and his brother were indicted by a federal grand jury on charges that they milked more than $36 million from an energy efficiency program funded by energy customers.

Stoneham Police Officer Joseph Ponzo, 48, and his brother Christopher Ponzo, 47, of North Reading, were indicted on one count of wire conspiracy and 12 counts of wire fraud. The FBI arrested the pair Friday morning “without incident,” a spokeswoman told the Herald.

The feds allege the brothers bribed an unnamed associate at a lead vendor for the Mass Save program in order for companies they control to get millions of dollars in contracts.

“We are definitely delinquents!!!! Ill (sic) let the pro handle the invoices!!” Joseph Ponzo allegedly emailed his brother, Christopher, and the unnamed associate in May 2013 as they planned contract invoices, according to the indictment.

The alleged bribes started at $1,000 a week in 2013 and snowballed into $10,000 bonuses and expensive gifts including an Apple MacBook and a John Deere tractor with a backhoe and loader, according to the indictment, as the alleged scheme got more complex over time.

Mass Save is an initiative funded by a state-mandated electric bill surcharge in which regional energy companies, including National Grid and Eversource, work with the Department of Energy Resources to promote energy efficiency in the Bay State, according to its website.

The hundreds of millions of dollars in Mass Save energy efficiency funds are disbursed to “lead vendors,” one of which the unnamed associate works for. These companies are tasked with contracting energy conservation and improvement work for consumers, according to the indictment.

The indictment alleges that Christopher Ponzo, an electrician, started bribing the associate to ensure the vendor granted his company, CAP Electric, millions in contract work.

Joseph Ponzo was looped in to his own contracts when the other two allegedly helped him create an insulation company, Air Tight, under his spouse’s name. Joseph Ponzo and his spouse have no experience in energy efficiency insulation, according to the indictment.

The associate was allegedly paid extra to help out with the alleged Air Tight scheme, including helping it to become an approved Mass Save contractor and to handle billing and invoicing for projects.

Joseph Ponzo then allegedly subcontracted the work, getting $3.4 million from the lead vendor company from 2015 to 2017, easily enough to purchase an $830,000 vacation home in Marco Island, Fla., in June 2018.