An electrical contracting company owner pleaded guilty today to falsifying employee retirement plan documents to avoid paying benefits worth over $199,000.
Michael E. Sewell, 50, of Street, Maryland, admitted to intentionally under-reporting hours worked by his employees at MESCO Inc. to avoid making contractually required contributions to employee benefit plans.
The union agreement between 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.
Beginning in January 2009, however, Sewell started 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. Sentencing is scheduled for 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.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Bill Jones of the Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for the Washington, D.C. Regional Office, and Director Mark Machiz of the Department of Labor’s Employee Benefits Security Administration Philadelphia Regional Office made the announcement.
The guilty plea highlights the importance of transparency and compliance in employee retirement plans, and demonstrates the Justice Department’s commitment to holding employers accountable for their actions.
RELATED: Secured 24 Ripped Off NYC School Security Guards: $400K Settlement
RELATED: Erica Howard Charged in $315K Small Business Fraud Scheme
Related Federal Cases
- APG Employee Bribed with Tickets, Golf for $50M Contract · Maryland
- JP Staffing Owner Faces Prison Time · Maryland
- D.C. Real Estate Hustler Admits to $500K+ Property Theft · Maryland
- FDIC Taps Bankers for MDI Oversight Amidst Community Bank Concerns · Washington
- Live Nation Faces Lone Fight: NY AG Rejects DOJ Deal · Washington
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
