Massachusetts fire chief facing heat after his private company received $5 million in town contracts

A Bay State fire chief is in the hot seat after his private company received more than $5 million from town contracts, according to the State Ethics Commission.

Townsend Fire Chief Gary Shepherd is accused of violating the state’s conflict of interest law, the Massachusetts commission said on Thursday.

The fire chief allegedly violated state law when he represented his private company in business with the town, and had financial interests in town contracts.

Shepherd, who operates the private company Shepco, Inc., first entered into a $754,333 contract with the town for a bridge replacement project. Then, his company agreed to a $4.7 million contract with the town for a water main project — for a total of about $5.4 million.

The fire chief was reportedly warned by the state before he did business with the town.

“Shepherd entered into the contracts despite having been issued a letter from the Commission’s Enforcement Division raising conflict of interest law concerns,” the Ethics Commission wrote.

Back on Nov. 30, 2022, the Ethics Commission in a letter from the Enforcement Division warned Shepherd that he needed a conflict of interest law exemption to contract with the town. The Commission also and told him how to comply with the law.

Shepherd was also told to contact the Commission’s Legal Division whenever he considered contracting with the town. The Enforcement Division alleges that Shepherd did not take any action in response to the letter.

The first contract was in December 2022, and the second project was in March 2023.

“The conflict of interest law prohibits municipal employees from having a financial interest in a contract made by the municipality they serve,” the Ethics Commission wrote. “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,” the commission added.

The Ethics Commission can impose a civil penalty of up to $10,000 for each violation of the conflict of interest law.

The Enforcement Division will give him the opportunity to resolve the matter through a disposition agreement. The commission plans to schedule a public hearing on the allegations against Shepherd within 90 days.