Jay man sentenced to prison for defrauding federal housing programs

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.

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