NER Construction Management Corp. president engaged in a scheme to defraud union benefit funds, IRS

NER was required to make contributions to the benefit funds each hour worked by covered employees at set rates and to deduct dues from the pay of each worker which would also be forwarded to the benefit funds.

From about January 2014 to May 2022, court documents state Loconte engaged in a scheme to defraud the benefit funds and the IRS by paying only certain workers for overtime worked without reporting the hours to the union benefit funds and without making the required payroll tax withholdings and payments.

At times, NER employees were paid in cash for overtime hours, and at other times, they were paid by check without the required withholdings. Court documents state that to facilitate the scheme, Loconte caused certain employees to cash checks at NER’s bank.

Loconte also caused NER to file false and fraudulent remittance reports with the benefit funds and the unions which underreported the overtime hours worked by the employees thus depriving the benefit funds and unions of contributions owed to members.

Loconte also caused NER to file false and fraudulent IRS payroll taxes that underreported the amount of wages paid.

Instead of paying employment taxes, court documents state Loconte used NER business accounts to pay for his various personal expenses.

Loconte was indicted by a federal grand jury in October 2022.

Mail fraud includes a potential sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Failing to pay taxes carries a possible sentence of up to five years in prison, two years of supervised release and a fine of up to $250,000.

Loconte’s attorney, George Vien, was unavailable for comment.