Methuen Contracting Company Agrees to Pay More Than $327,000 to Resolve Allegations of Failing to Contribute to Unemployment Trust Fund
Settlement with Aulson Company Inc. Part of Ongoing Effort to Target Employers That Fail to Pay Their Quarterly Unemployment Contributions
BOSTON – A Methuen contracting company has agreed to pay the Commonwealth more than $327,000 to resolve allegations that it failed to pay into the Commonwealth’s unemployment trust fund, Attorney General Martha Coakley announced today.
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 (EOLWD\DUA) in a collaborative effort to target employers that fail to pay their quarterly unemployment contributions.
“Failure to pay unemployment contributions puts a greater strain on the unemployment system,” AG Coakley said. “Through enforcement, we aim to level the playing field for those businesses that already follow the law and to assure future compliance.”
Under the terms of the settlement agreement, the Aulson Company Inc., and its president, Alan P. Aulson Sr., age 63, of Georgetown, agree to pay the Commonwealth a total of $327,565.98 for failing to pay their quarterly unemployment contributions from January 2009 through January 2012.
The Department of Unemployment Assistance (DUA) administers the Unemployment Insurance program, providing temporary assistance to unemployed workers. Funding for these benefits comes from Massachusetts employers. Employers either pay quarterly contributions into the trust fund or non-profit or governmental employers have the option to self-insure, reimbursing the state dollar-for-dollar for benefits paid.
"Contributions to the Unemployment Insurance Trust Fund are critical in order for the Commonwealth to maintain a safety net for people out of work through no fault of their own," said Joanne F. Goldstein, Secretary of Labor and Workforce Development. "Businesses who do not contribute puts an unfair burden on those who do. The Executive Office of Labor and Workforce Development will continue to partner with the Attorney General to address all fraud and abuse in the unemployment insurance system."
Alan P. Aulson Sr. is the president of the Aulson Company Inc., a Methuen specialty contracting company founded in 1990. Beginning in January 2009 and occurring at various times through January 2012, Aulson and his company failed to pay employer tax contributions. As a result of the failure to pay the tax liability, Aulson and his company owe more than $327,000 in employer contributions. Under the settlement, the defendants have made a lump sum payment of $150,000 to the Commonwealth and will continue to make monthly payments totaling $30,000 until the remaining unpaid balance is paid in full.
AG Coakley’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 system. The prosecution of insurance fraud helps prevent the increase in premiums and taxes that are the result of fraudulent insurance claims. In 2011, the Insurance and Unemployment Fraud Division obtained $5,578,934 in restitution orders in 33 matters.
To report unemployment fraud to the EOLWD\DUA, call the agency’s toll free fraud hotline at 1-800-354-9927 anytime, 24 hours a day. Callers may remain anonymous.
The case was handled by Assistant Attorney General Joshua Pakstis of AG Coakley’s Insurance and Unemployment Fraud Division with assistance from investigator Christopher Gabriel of the Attorney General’s Office and Richard Carney, Director of Revenue Enforcement and Audit, from EOLWD\DUA.