2 Plead Guilty in Delaware Roofing Kickback Scheme

By RANDALL CHASE | August 26, 2013

A former Delaware town manager and a construction contractor have pleaded guilty to federal conspiracy charges in a kickback scheme.

Former Camden town manager James O. Plumley III and William P. Mahon pleaded guilty Wednesday to conspiracy to commit mail fraud. They will be sentenced in December.

Prosecutors said Plumley used his position at a company called Roofing Resources Inc. to steer roofing repair contracts for state-owned facilities to Mahon’s company. Mahon would inflate his project bids, then steer kickbacks to Plumley.

As part of their plea agreements, the two men agreed to repay $204,000 to the state Division of Facilities Management.

Plumley and another contractor were sentenced in state court last year to probation for an embezzlement scheme involving fraudulent repairs billed to the town.

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