Case Details

Year Initiated/Committed


Year Resolved


Lead State


Participating States


Stephen M. Gallagher; East Commercial Construction


third-degree false representations for a government contract

Sentence Imposed

Court to determine sentence up to 364 days in the county jail and a term of probation. The companies owned by the individual defendants also pleaded guilty to the same charge. The individual and corporate defendants are disqualified from public contracts for five years, and are jointly and severally liable for paying a $50,000 penalty to the Anti-Trust Revolving Fund for anti-trust enforcement efforts.

Case Description

See also New Jersey v. Starr. Kenneth Disko, the former contracted engineer or engineer/architect on record for the Westfield, Tinton Falls and Scotch Plains-Fanwood school districts, pleaded guilty to an accusation charging him with second-degree false representations for a government contract. Disko admitted that he orchestrated a series of bid-rigging and kickback schemes from 2001 to 2010 in those school districts involving Gallagher and two other contractors. Disko prepared fraudulent quotes and estimates and directed contractors to inflate quotes and estimates. He admitted that he submitted the fraudulent quotes and estimates to the districts and recommended approval of the contracts in exchange for kickbacks from the contractors. Gallagher admitted that he helped another contractor to obtain those contracts by preparing fraudulent and fictitious quotes and estimates for his own companies and submitting them to Disko as higher bids than those submitted by Starr. Also, in connection with other contracts that were awarded to Gallagher’s company in the Westfield and Scotch Plains-Fanwood districts, Gallagher inflated quotes and the cost of work performed. The state’s investigation revealed that in return for the inflated contracts, Gallagher gave cash kickbacks to Disko.