Wednesday, August 1, 2012

Racketeering Charge Dropped, Fraud Claim Remains Against Energy Conservation Firm

Posted By on Wed, Aug 1, 2012 at 9:05 AM

A racketeering charge against Seattle-based McKinstry Essention by the Blaine County School District has been dropped, but Blaine County Magistrate Judge Robert Elgee has ruled that the school district's allegation of fraud against the energy company can continue.

This morning's Idaho Mountain Express reports that Elgee dismissed the racketeering charge following an hour-long hearing, focusing on a contact between the school district and McKinstry to introduce new energy conservation to eight of the county's schools and facilities. McKinstry is claiming it performed work worth $25.8 million, but the district said it only authorized work worth $18.6 million.

In dismissing the racketeering charge, Elgee also ruled that the school district had provided sufficient evidence to pursue a claim. The Mountain Express reports that the district alleged that McKinstry committed fraud by promising to guarantee specified energy savings and then failing to put the guarantee in writing.

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