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Informant accuses Nashua mayor, husband, of drug use, bid kickbacks in police documents

By Staff | Nov 5, 2013

WARNING TO READERS: The documents attached to this story contain crass and profane language not suitable for children.

Mayor Donnalee Lozeau was accused in March of abusing drugs while she was deputy speaker of the House and steering contracts to her friends while she was previously working at a local community action program, according to documents released Monday by the mayor’s husband.

During a March 15, 2013, interview, an individual cooperating with Nashua police claimed that Donnalee Lozeau and her husband, David Lozeau, took kickbacks in exchange for help winning contracts from Southern New Hampshire Services.

The same individual also claimed that Donnalee Lozeau used cocaine before she became mayor and smoked marijuana as recently as last year.

The allegations are laid out in a series of police investigative files released to The Telegraph on Monday by David Lozeau. The documents describe the actions police undertook, beginning in December 2009 and continuing through mid-2013, to probe allegations of misconduct against the Lozeaus.

The records were compiled by Nashua police in response to a request made under the state’s Right-to-Know Law by The Telegraph.

Donnalee Lozeau declined to answer questions about the police files released Monday. In a statement released last week – before the documents were made public – the mayor said she has not engaged in criminal activity of any kind. Donnalee Lozeau said the suggestion that she committed any misconduct of any kind is unfounded, unsubstantiated and untrue.

The Lozeaus came under investigation by Nashua police as early as Oct. 28, 2009, when police received a tip from an informant about a drug dealer who allegedly sold marijuana to David Lozeau.

The same person also accused Donnalee Lozeau of providing him with bid information in exchange for kickbacks while she was working at Southern New Hampshire Services, Hillsborough County’s community action program.

Donnalee Lozeau was director of program and community development for SNHS from 1994 until she became mayor in 2008.

“I’d get a phone call and told the bids were coming in, and then I’d meet with them and we’d discuss the amount of the job, and I’d wait for the lowest bid and I was told which the lowest bid was and what I had to come in at,” the man told police during a Dec. 7, 2009, interview.

The informant said he would provide the Lozeaus with kickbacks of about 10 percent of the value of the contract. This amounted to payments of around $500 or $1,000 for contracts worth $10,000, according to police transcripts obtained by The Telegraph.

The payments were made in cash, the informant said, and money was transferred in hand in open areas, such as Villa Blanca, Poor Pierre’s Restaurant and the Nashua House of Pizza.

The informant said he won at least five jobs with assistance from the Lozeaus over a period of 15 years.

He claimed the Lozeaus passed him information about contracts and low bidders on napkins while they were out to dinner.

“She’d talk blatantly about it …” the informant said, referring to Donnalee Lozeau. “You know what I mean? She wasn’t hiding anything … I don’t think she knows she’s doing anything wrong, to be honest with you.”

The man said he also was expecting to receive bidding information from David Lozeau in the future about jobs for the city of Nashua. The man said Donnalee Lozeau “knows everything” about projects being funded with city or state money.

“All that stuff’s right on top of her desk,” he told police.

The allegations against the Lozeaus weren’t taken lightly. Within days, Nashua police obtained permission from the New Hampshire Attorney General’s office to secretly record David Lozeau’s conversations with the informant.

On Dec. 10, 2009, the informant spoke with David Lozeau over the phone and tried to get him to discuss some of the contract work the informant mentioned to police three days earlier.

David Lozeau made no promises about the contract work, according to a transcript of the conversation, but agreed to “look into it” on the informant’s behalf.

At least two more conversations between David Lozeau and the informant were caught on tape between December 2009 and January 2010.

With the transcripts of those recordings coming to light for the first time this week, Donnalee Lozeau and her husband are vigorously denying that the recordings uncovered any evidence of bid-rigging.

No charges were ever filed against the Lozeaus, and police records show the investigation appeared to slow down in 2010 and 2011, but police remained concerned about David Lozeau’s actions as bail commissioner, and keeping in contact with suspects from other investigations.

Detectives appeared to renew their interest in the investigation in late 2012, apparently spurred by an off-hand remark from a civilian worker at the police department.

According to police records, the civilian told several police supervisors in November 2012 that things weren’t “going well at home” for the Lozeaus, and that Donnalee Lozeau was mad at her husband “because he won’t get a real job.”

The civilian said he was informed by a source inside city government that David Lozeau spends a significant amount of time smoking marijuana with his friend.

The civilian claimed David Lozeau’s friend previously came under investigation for using city asphalt on private jobs, but Donnalee Lozeau got the investigation into the asphalt scam “shut down.”

In January 2013, detectives met again with the informant who first made allegations against the Lozeaus more than three years earlier.

The informant repeated his accusations, calling the Lozeaus “corrupt” and alleging they were now steering contracts for municipal work in Nashua.

During another interview on March 15, 2013, the same individual claimed he had smoked marijuana with Mayor Donnalee Lozeau the previous year, two days after New Year’s Eve, during a party at her house.

The informant also alleged that when Donnalee Lozeau and her husband were running a restaurant, they would lock the doors of the establishment after closing time and “party all night long” with him.

“What would she do?” Nashua police Sgt. Kevin Rourke asked the informant, according to a transcript.

“Couple zippies,” he responded.

“Zippies – what do you mean?” Rourke asked.

“Coke,” the man replied.

David Lozeau ran a restaurant called The Trough before he and Donnalee Lozeau married. They later ran a restaurant together on Main Dunstable Road called City Streets.

When that establishment closed, the Lozeaus ran a catering business, then opened a new version of City Streets inside a building at 233 Main St. in 2000, which is now the location of Norton’s Classic Cafe.

Around the same time, Donnalee Lozeau was reaching the pinnacle of her 16-year career in the New Hampshire House of Representatives.

She was elected to the Legislature in 1984, and rose to the position of deputy House speaker in 1998.

A call to the director of SNHS was not returned Monday.

Jim Haddadin can be reached at 594-6589 or jhaddadin@nashuatelegraph.com. Also, follow Haddadin on Twitter (@Telegraph_JimH).