A Maryland man has been caught falsifying employee retirement plan documents to avoid contributing to benefit plans.
Michael E. Sewell, 50, of Street, Maryland, pleaded guilty to intentionally under-reporting hours worked by employees to avoid contractually required contributions to employee benefit plans.
The union agreement between his company, MESCO Inc., and the International Brotherhood of Electrical Workers Local 24 required Sewell to make monthly contributions to seven employee health, welfare, and pension benefit plans, and to file monthly remittance reports with the administrators of those plans.
Beginning in January 2009, however, Sewell began paying some wages earned by MESCO employees from the payroll of a second company he owned, Michael E. Sewell and Associates Inc., and failed to report those wages in monthly remittance reports to the administrator of the benefit plans.
As a result, Sewell failed to contribute over $199,000 to the employee benefit plans.
Sewell is scheduled to be sentenced on October 30, 2014.
The case was investigated by the Department of Labor and is being prosecuted by Trial Attorney Vincent Falvo Jr. of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Martin J. Clarke of the District of Maryland.
The Employee Retirement Income Security Act (ERISA) requires employers to provide certain benefits to their employees, including health, welfare, and pension plans.
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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