Wakefield Man Among Those Charged in Vehicle Inspection Scheme

A Wakefield man is one of three defendants facing charges in an alleged scheme to create a “black market” for vehicle inspection licenses for service stations.

David Gaw, 70, was indicted by a federal grand jury, while defendants Simon Abou Raad, 50, of Tyngsboro, and Mark C. LaFrance, 51, of Braintree, were arrested back in March.

According to an announcement from U.S. Attorney Carmen Ortiz, the three are charged in U.S. District Court with conspiracy to extort money under color of official right in exchange for an official license to conduct Mass. motor vehicle safety inspections, participating in a scheme to commit mail fraud, and honest services mail fraud.

LaFrance was reportedly a project manager for the state who had oversight over the entire motor vehicle inspection program. Gaw worked as a senior inspector in Lawrence whose job was to inspect the stations applying for inspection licenses. Raad is accused of offering to buy inspection licenses and equipment from service station owners for between $5,000 and $6,000. From there, he would allegedly sell the licenses and vehicle inspection equipment to others at prices ranging from $50,000 to $75,000 each.  Gaw allegedly identified to Raad the stations that were interested in obtaining a license.

Stations that wish to conduct inspections pay $100 for the fee and $2,500 for the equipment. However, Ortiz noted that at the time, the RMV inspection network was at full capacity and not granting new licenses. The scheme allegedly used forged documents claiming that the station owners buying and selling the licenses were either merging or having a change in management.

Ortiz reported that about 10 of these licenses were sold, netting about $657,000. She also noted that the investigation had involved the interception of electronic communications, with Gaw and Abou Raad reportedly discussing one expected transaction. The charges carry maximum sentences of 20 years with fines of at least $250,000. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.