Ronald P. Mulcahey, 53, of Andover, Massachusetts, pleaded guilty today to a scheme that gutted union workers’ benefits and bled the federal government dry. For more than three years, Mulcahey paid employees in cash while hiding their hours and wages, dodging required contributions to the Massachusetts Laborer’s Benefit Funds and evading federal employment taxes. His fraud spanned multiple companies and left union members’ healthcare, pensions, and hard-earned protections in the crosshairs.
Mulcahey, owner and sole corporate officer of Wing Inc. Specialty Trades, EWT-Fireproofing, Inc., and Wing Environmental, Inc., exploited his position to run a cash payroll operation from January 2008 to June 2011. Wing Environmental, bound by a collective bargaining agreement with Laborers’ International Union of North America, Local 1421, was required to report employee hours and contribute to union benefit funds. Instead, Mulcahey falsified records, underreporting hours and slashing contributions — all while workers unknowingly lost access to critical benefits.
The scam wasn’t limited to union obligations. At all three of his companies — which provided asbestos abatement, demolition, and fireproofing services — Mulcahey kept wages off the books, dodging federal tax requirements. By failing to report wages, he avoided withholding and paying employment and income taxes, delivering a double blow: defrauding the IRS and jeopardizing employees’ future Social Security, Medicare, and unemployment benefits.
He pleaded guilty to making false statements to ERISA-covered benefit plans and to tax evasion. U.S. District Court Judge Richard G. Stearns scheduled sentencing for January 19, 2017. The charges carry significant prison time and financial penalties, underscoring the federal crackdown on employers who undermine worker protections and tax compliance.
“We remain committed to protecting the rights of union members who rely on ERISA funds which provide them with healthcare, pensions, and other services,” said U.S. Attorney Carmen M. Ortiz. “The failure of employers to make appropriate contributions to these funds not only violates federal law, it endangers the funds’ fiscal viability and jeopardizes union members who need the services they provide.”
Enforcement officials didn’t mince words. Michael C. Mikulka, Special Agent in Charge of the DOL-OIG, said Mulcahey’s actions “have an adverse effect on the American workforce.” Joel P. Garland of IRS-Criminal Investigation added: “By paying cash wages off the books, Mr. Mulcahey risks future Social Security, Unemployment or Medicare benefits for his employees. The loss of revenue also damages our nation’s system of taxation.” The case was prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Ryan DiSantis of Ortiz’s Public Corruption Unit.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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