City of Chicago Department of Transportation Contractor Sentenced to 24 Months for Mail Fraud Scheme

Timothy Mason, co-owner of 350Green LLC, a green tech startup contactor to the City of Chicago Department of Transportation, that installed and maintained charging stations for plug-in electric vehicles, was sentenced on Friday, September 22, 2017, to 24 months in federal prison with 1 year supervised release for a mail fraud scheme in violation of 18 U.S.C. § 1341.

This case stems from an investigation initiated by the City of Chicago Office of Inspector General, conducted jointly with the Federal Bureau of Investigations and the U.S. Attorney for the Northern District of Illinois.

As principals of 350Green, Mason and his co-owner, Mariana Gerzanych, applied for and received over $2.9 million in grants from the City of Chicago, the Pennsylvania Department of Environmental Protection, the Association of Bay Area Governments, and the Bay Area Air Quality Management District. The grant funds were intended to support installation and operation of charging stations for electric vehicles. In order to obtain grant funds, Mason and Gerzanych falsely claimed that a company called Actium Power had supplied Level 3 DC fast chargers to 350Green and that 350Green had paid Actium Power for those chargers, when in fact Actium Power did not supply the chargers, and the actual manufacturer of the chargers was never paid. Further, 350Green submitted claims to the City of Chicago that falsely represented that subcontractors and vendors had been paid when in fact, they had not.

The prosecution dropped charges against co-owner, Gerzanych, in exchange for a $10,000 fine and 200 hours of community service, and her full cooperation in the investigation.

A hearing for Mr. Mason’s restitution was set by Circuit Court Judge Sharon Johnson Coleman for October 12, 2017.