An El Paso man was sentenced in a federal court to 24 months in prison with a $5,000 fine for defrauding two federally funded correctional institutions.
According to court documents, Jack McCager Kidd, 72, was the owner of a company contracted by the Bureau of Prisons to construct two gas pipelines to separate correctional institutions—a high-security prison in Pennsylvania and a medium-security prison in Alabama.
Kidd falsely invoiced the institutions for more natural gas than his company delivered and refused to provide the information requested by the institutions concerning the amount of natural gas delivered and the calculations he used to determine the monthly invoice amounts.
He was arrested on October 28, 2021, and charged with 72 counts of wire fraud. He pleaded guilty on August 30, 2023, to one count of wire fraud. Per the plea agreement, Kidd also agreed to pay $11,397,374 in restitution.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Department of Justice Office of the Inspector General Fraud Detection Office and FBI investigated the case.
