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Timothy P. Gallagher, 47, of Jay was sentenced to prison Tuesday on a federal fraud charge by Judge Jon D. Levy in U.S. District Court in Portland.

Gallagher pleaded guilty in April to defrauding a company that received funding from programs administered by the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture. He was sentenced to one year and a day in prison and three years of supervised release, said U.S. Attorney Thomas E. Delahanty II.

Investigators found that Gallagher embezzled $79,639 from Stanford Management LLC, a property management company in Portland that specializes in affordable housing and receives millions of dollars in federal funding.

While employed as a full-time construction manager at Stanford, Gallagher set up a competing construction company and paid himself a wage to hire subcontractors to work on Stanford properties. He also concealed his ownership of the competing company from Stanford and the federal agencies.

Kelley writes about some of the most critical aspects of Maine’s economy and future growth, including transportation, immigration, retail and small business, commercial development and tourism, with...

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