2/2/2017 4:36:23 PM
For Immediate Release:
SAINT PAUL – Minnesota Commerce Commissioner Mike Rothman announced that Gerard Leonard Roy, 56, of Prior Lake, has been sentenced in U.S. District Court to 82 months in prison for fraud and money laundering in connection with a series of construction companies he owned and operated.
“Committing insurance fraud was sadly part of business as usual for Gerard Roy,” said Rothman. “He created fraudulent insurance documents to win construction bids, unfairly taking business away from honest contractors. He then victimized his clients and subcontractors by leaving behind unfinished projects and unpaid bills without the financial protection that legitimate insurance bonds would have provided.”
“The defendant has spent his entire adult life in and out of the criminal justice system,” said Assistant U.S. Attorney Benjamin Langner. “Roy has been convicted nearly fifty times for offenses involving deceit, theft, drugs and violence. The sentence imposed today may be the only way to adequately protect the public from the defendant’s lifelong disregard for the law.”
According to Roy’s guilty plea, between 2010 and February 2015, he owned and operated at least seven construction companies, through which he bid on construction contracts offered by public and quasi-governmental organizations, including the City of Minneapolis, City of Hastings, Washington County, Metropolitan Council, Minnesota State Colleges and Universities, and others.
Roy used the companies that he controlled to fraudulently obtain construction contracts from public and private entities by submitting fake construction bonds attesting that the projects were insured against failure to complete the contracts or to pay subcontractors. However, Roy had no such insurance and was ineligible to bid on the projects.
Roy forged signatures to create phony bond documents, including bid bonds, performance bonds and payment bonds, purportedly issued by a surety on behalf of Roy or one of his companies.
Roy fraudulently obtained at least $3 million in construction contracts, at least $1.8 million in payments on those contracts, and caused losses to clients, subcontractors and others of approximately $800,000.
Roy used a significant portion of funds he stole for his own purposes, including making house payments, purchasing jet skis and snowmobiles, and transferring money into a personal bank account.
At least two companies he controlled filed for bankruptcy during the period covered by the indictment, with total outstanding liabilities in excess of $1 million.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Minnesota Commerce Fraud Bureau and United States Postal Inspection Service.
Director of Communications
Minnesota Department of Commerce
P: 651-539-1463 | C: 651-368-5050 | email@example.com