Canton man indicted for nonpayment of unemployment

A Canton man and a Milton-based business have been indicted in connection with failing to pay more than $600,000 into the commonwealth’s unemployment trust fund, Attorney General Maura Healey announced last week.

Eugene Kelley Jr., age 51, of Canton, and his marine construction business, RDA Construction Corp., were indicted last Thursday by a Suffolk Grand Jury on 17 counts each of non-payment of employer contributions. They will be arraigned in Suffolk Superior Court on July 7.

“The unemployment insurance program is designed to provide eligible workers who have lost their jobs with temporary assistance,” said Healey. “Businesses that fail to pay into this system shortchange the people who rely on it and obtain an unfair advantage over competitors. Our office will continue to enforce compliance to protect the integrity of the system.”

The case is the result of an investigation referred to the Attorney General’s Office by the Executive Office of Labor and Workforce Development’s Department of Unemployment Assistance (DUA) in a collaborative effort to target employers that fail to pay their quarterly unemployment contributions. DUA administers the Unemployment Insurance program, which provides temporary assistance to unemployed workers.

“Employers face serious consequences for fraud, failure to pay, and failure to file,” said DUA Director Robert Cunningham. “Our DUA Audit team is doing a great job protecting the integrity of the system.”

Between 2010 and 2014, Kelley served as the president of RDA Construction, a marine construction company incorporated in 1981. Beginning in 2010 and occurring at various times through 2014, Kelley and RDA Construction failed to pay more than $600,000 in employer tax contributions.

DUA’s Revenue Audit and Enforcement Division focuses on the prevention, detection and investigation of those who defraud or attempt to defraud the unemployment insurance program. Once fraud is detected, the Revenue Audit and Enforcement Division works aggressively with the AG’s Office and other agencies to recover money owed to the Unemployment Insurance Trust Fund.

Healey’s Insurance and Unemployment Fraud Division works to protect consumers and the integrity of the insurance system by investigating and prosecuting those who commit fraud against all types of insurers, including the commonwealth’s unemployment insurance and workers’ compensation systems.

To report unemployment fraud, call the DUA’s Fraud Hotline at 1-800-354-9927 or visit www.mass.gov/lwd/ui-fraud anytime, 24 hours a day. Callers may remain anonymous.

These charges are allegations and the defendant is presumed innocent until proven guilty. This case is being handled by Assistant Attorney General Turner Smith through Healey’s Insurance and Unemployment Fraud Division along with investigator Philip Mantyla of the AG’s Office, and Jose Pacheco, director of audit and enforcement from DUA.

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Posted by Canton Citizen on Jun 25 2015. Filed under News. Both comments and pings are currently closed.