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Andover Man Charged in Union Benefit Funds Theft Scheme
BOSTON – In a shocking case of corporate greed, Ronald P. Mulcahey, 53, and his Woburn construction company, Wing Environmental, Inc., have been charged with defrauding union benefit funds and the IRS.
The indictment alleges that between January 2008 and June 2011, Mulcahey and Wing Environmental engaged in a scheme to defraud the Laborer’s International Union of North America, Local 1421, by paying some of their union employees in cash. By keeping the cash payments off-the-books, Mulcahey and Wing Environmental falsely underreported the union workers’ hours in order to avoid making the required hourly payments to the benefit funds.
Union benefit funds are used to provide healthcare, pensions, and other services to union members. By defrauding the union benefit funds, Mulcahey and Wing Environmental were able to save thousands of dollars in labor costs, while the union members were left without the benefits they were entitled to.
The indictment also alleges that Mulcahey and Wing Environmental defrauded the IRS by paying certain employees in cash and underreporting their wages. By doing so, Mulcahey avoided paying employment taxes on the unreported wages, resulting in a significant loss of revenue for the government.
Wing Environmental, Inc. was a union company that provided asbestos abatement and demolition services. The company had a collective bargaining agreement with the Laborer’s International Union of North America, Local 1421, which required them to accurately report to the union benefit funds the number of hours worked by their union employees and to make the corresponding contributions to the funds.
Each of the charging statutes provides for a sentence of no greater than five years in prison and three years of supervised release. The ERISA charges provide for a fine of no greater than $250,000 and the tax charges provide for a fine of no greater than $100,000.
United States Attorney Carmen M. Ortiz, Cheryl Garcia, Special Agent in Charge of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, and Susan A. Hensley, Regional Director of the Employee Benefits Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Massachusetts
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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