It looks as though Derry, N.H., contractor John Burke is finally going to start to pay for his part in a scheme to defraud the federal government out of hundreds of thousands of dollars in home-repair contracts. But he's still getting a good deal.
Burke, who first pleaded guilty to bribery charges in March 2005, has managed to delay his sentencing until the end of this month. Burke paid about $100,000 in bribes over five year to former Veterans Administration loan specialist Robert Mayer of Salem, N.H., in exchange for home-renovation contracts worth $3.1 million.
Mayer, a former Salem Planning Board member, faked invoices to make it appear several contractors had been awarded the jobs repairing homes the VA was renovating or selling. In fact, those contracts went only to those who paid him bribes. Mayer pleaded guilty to bribery and fraud. He began a 63-month federal prison sentence in September 2005.
Burke faces up to 15 years in prison for bribing a public official and five years for conspiring to defraud the government. He is scheduled for sentencing Oct. 23.
In addition, federal authorities have levied civil fines for the $124,180 in invoices Burke filed for work he never performed. Prosecutors say Burke built his custom home at 4 Cross Road at least in part with his ill-gotten gains. But rather than seize the $564,000 home outright, prosecutors agreed to let Burke sell or refinance the home to make an initial payment of $125,000 on the $300,000 in fines he agreed to pay. Payment of the remaining $175,000 will wait, without accruing interest, while Burke serves his prison term.
Burke should count himself fortunate the federal government is willing to wait to collect from an admitted criminal. That's $175,000 interest-free for up to 15 years - terms a law-abiding borrower could only dream of.
