Lee Ferguson, Embezzlement, Connecticut 2023

Electrical Contractor Sentenced to 20 Months in Prison for Stealing 3.3 Million from Employees.

A notorious electrical contractor has been brought to justice in Connecticut. Lee Ferguson, 62, of Farmington, was sentenced to 20 months of imprisonment, followed by one year of supervised release, for stealing more than $3.3 million from his employees.

Ferguson, who owns and operates Ferguson Electric and Ferguson Mechanical, headquartered in Plainville, caused to be deducted approximately $1.60 to $3.15 per hour from each of his employee’s fringe benefits package as a ‘third party administrator fee’ for the employees’ pension plans. This fee was paid over to TPA of Connecticut, a company that Ferguson established and controlled.

TPA of Connecticut, in turn, sent the monies to DJS Associates, a Florida company that Ferguson formed for the purported purpose of performing business-consulting services for him and his companies. However, no such services were performed and Ferguson used the funds for personal expenses.

Through this scheme, Ferguson stole a total of $3,357,516 from more than 300 employees. He has made full restitution.

Ferguson pleaded guilty to one count of money laundering on July 31, 2019. He is released on a $50,000 bond and is required to report to prison on April 28.

This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, U.S. Labor – Office of Inspector General, and U.S. Labor – Employee Benefits Security Administration, Boston Regional Office. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Ferguson was ordered to pay a $200,000 fine in addition to his prison sentence.

Mandatory Facts: Defendant: Lee Ferguson; Crime: Money Laundering; City: Hartford, Connecticut; Date: April 28; Sentence: 20 months imprisonment and one year of supervised release; Fine: $200,000; Amount stolen: $3,357,516.

Source: https://www.justice.gov/usao-ct/pr/electrical-contractor-sentenced-20-months-prison-stealing-33-million-employees