Duggan gets 4 months for scam; Massad check reduces ex-contractor's term.

Byline: Thomas Caywood

WORCESTER - A former Shrewsbury contractor convicted of larceny last month for fleecing a city man in a home improvement scam has been sentenced to four months in jail - a sentence that was greatly reduced thanks to an $18,000 restitution check written by Commerce Bank & Trust Chairman David G. "Duddie" Massad.

Joseph T. Duggan III, who previously served federal prison time for bank fraud and money laundering, was facing a two-year sentence in the Worcester County Jail and House of Correction. But in a last-minute courtroom twist involving one of the region's wealthiest men, the sentence was cut to four months with payment of restitution to the victim, Warren M. Keith of Circuit Avenue.

District Court Judge Thomas F. Sullivan Jr. had stated his intention on Thursday to sentence Mr. Duggan to two years in jail, of which he would be required to serve 15 months with the balance suspended for six years, when Mr. Duggan's lawyer raised the prospect that his client could repay Mr. Keith the same day.

Judge Sullivan granted Mr. Duggan's lawyer, Matthew A. Pingeton of Lowell, an hour recess to get the money.

Mr. Massad showed up in the courtroom after the recess with a check for $18,000, clearing the way for Judge Sullivan to impose the lesser sentence of four months.

Mr. Pingeton argued that the lesser sentence combined with payment of full restitution up front was a better outcome for Mr. Keith, 70, who is retired.

"I think it's a fair result for both sides," Mr. Pingeton said in an interview yesterday.

Mr. Pingeton noted that his client, who has declined to comment throughout the case, has done construction work for Mr. Massad, the bank chairman.

"He came with the check for $18,000 and paid the restitution on behalf of Joe. Joe's going to pay it back. It's a loan basically," Mr. Pingeton said.

Mr. Massad didn't respond to a message left at his bank office yesterday afternoon. In a previous interview last year, Mr. Massad said he and Mr. Duggan, both private pilots, have been friends for years, and that Mr. Duggan does construction work for him on building projects.

In that interview, Mr. Massad said he had no ties to Mr. Duggan's defunct contracting business. Amid a slew of complaints to state building regulators from local families left with shoddy, unfinished home renovations, Mr. Duggan was forced to surrender his various contractor's licenses in October 2005. He was also fined more than $48,000 for various violations - fines which had ballooned to more than $118,000 as of June after years of interest and penalties.

In 1992, Mr. Duggan was sentenced to 57 months in federal prison for bank fraud and money laundering in a case unrelated to his work as a contractor.

Mr. Massad said in the earlier interview that he was not concerned about being linked with the ex-con.

The two men have been frequently observed together on Grafton Hill following Sunday morning services at St. Joseph's Church on Hamilton Street. In that previous interview, Mr. Massad made no bones about his friendship with Mr. Duggan.

"I don't mind being seen with him. He doesn't do anything for me other than work."

However, the bank chairman said in that interview that he wouldn't continue the friendship if Mr. Duggan ran afoul of the law again.

"If I ever heard of an instance that was at all criminal he couldn't come near me at all. He couldn't cut a tree or dig a hole at all," Mr. Massad said.

For his part, Mr. Keith said he's pleased and relieved to get his money back.

"I feel great. Really. I didn't think the way the judge and the lawyers were talking that I was going to get the money," he said. "I wanted the money but I would have liked to see more jail, too. I went through five years of waiting and him playing with me."

Mr. Keith testified at Mr. Duggan's trial last month that he hired the contractor to build a two-car garage addition to his Circuit Avenue home with an unfinished room beneath the garage.

Mr. Keith said that he paid Mr. Duggan $18,000, including roughly $8,900 in checks made out to BCI Supply Co., over a two-week period at Mr. Duggan's instructions. He said workers removed some siding from his home and dug a large hole in his yard, but the work quickly ground to a halt despite his repeated pleas over the next two years to Mr. Duggan to finish the job. Police later determined Mr. Duggan cashed the BCI Supply checks himself and that no such business existed.

Also on Thursday, two unrelated probation violation cases against Mr. Duggan dating back to the 1990s were dropped upon payment of $12,600 in restitution to other victims. That money did not come from Mr. Massad, according to Mr. Duggan's lawyer.

Mr. Duggan is scheduled to turn himself in next week to begin serving his jail sentence.

Contact Thomas Caywood at [e-mail].

ART: PHOTO

PHOTOG: TELEGRAM & GAZETTE STAFF PHOTO

CUTLINE: David "Duddie" Massad, left, and Joseph T. Duggan walk to their vehicles after attending a service at St. Joseph's Church last year.