Massachusetts HVAC contractor accused of nearly $8 million rebate fraud

A coalition of Massachusetts utility companies has filed a civil lawsuit against a local HVAC contractor, accusing its owner of a nearly $8 million fraud scheme that exploited Mass Save, the state’s widely known energy-efficiency program.

The big picture: Mass Save, which offers home and business owners rebates and discounts on certain energy-saving equipment upgrades, is funded by mandatory surcharges added to ratepayers’ utility bills. 

• The alleged fraud comes as state lawmakers clash over the program’s $1.5 billion annual price tag — with House lawmakers voting to slash funding, while the Senate aims to preserve current spending.

What’s happening: Four of the five utility companies that sponsor Mass Save on Monday sued MWD Heating & Air Conditioning and its owner, Mark Dyszczyk, in Plymouth Superior Court. 

• The plaintiffs contend that Dyszczyk pocketed $7.7 million by filing false rebate claims for residential and commercial heat pumps that were either never installed or removed shortly after passing inspection in 2025 and 2026. The suit also alleges that Dyszczyk fraudulently claimed rebate funds for installing non-qualifying equipment.

By the numbers: After red flags emerged in April 2026, the utilities conducted a months-long investigation of 220 project sites where MWD claimed to have installed heat pumps, and found that less than 10 percent of the company’s work complied with Mass Save requirements, according to court documents.

• The suit cites a nearly $124,000 rebate paid for a heat pump that was never installed at a local school and a $67,500 rebate collected for an uninstalled heat pump at a commercial building. 
• After Dyszczyk and his wife were informed in May that he and his company were suspended pending an investigation, the pair created or operated six other companies to bypass the suspension and continue applying for Mass Save rebates, according to the Boston Globe.

Zoom in: Court filings describe unusual tactics deployed across commercial properties, including a car wash owner’s account that Dyszczyk arrived at 5 a.m. with a crane to remove heating equipment without his consent.

• MWD requested a nearly $62,000 rebate for a liquor store job where nine units were confirmed installed during an April inspection; two weeks later, however, inspectors found that five units had been removed, per the filings. 

State of play: At the time of publication, Plymouth Superior Court Judge Mark Gildea has approved a temporary restraining order, personal property liens, and a bank freeze.

• The case is currently a civil action, though court filings accuse Dyszczyk of fraud and theft; law enforcement agencies have not commented publicly — Dyszczyk does not currently face criminal penalties.
• The utilities have canceled pending payments, halted application reviews, and formally barred MWD from future Mass Save participation.

Dyszczyk and a former MWD employee didn’t return requests for comment. Mass Save said it can’t comment on pending litigation. 

Zoom out: The lawsuit marks the latest in a series of fraud cases hitting Mass Save in recent years, including two brothers who pleaded guilty in November 2024 after defrauding a company to obtain tens of millions in Mass Save funds.

• In December 2024, a sober home operator pleaded guilty to schemes, including millions in fraudulent Mass Save insulation work, resulting in a six-year prison sentence.