Waltham Business Owner Sentenced on Charges of Failing to Pay into Unemployment Trust Fund
Business and Owner Failed to Pay Tens of Thousands of Dollars in Tax Contributions to Department of Unemployment Assistance
BOSTON – A Waltham man and his business have admitted to sufficient facts to charges they failed to pay tens of thousands of dollars into the Commonwealth’s unemployment trust fund, Attorney General Martha Coakley announced today. The case is the result of investigations 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.
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.
John Capello, age 42, of Waltham, and his company, Ieraci Landscaping, Inc. (Ieraci), admitted to sufficient facts to the charge of Non-Payment of Employer Contributions (16 counts). Judge Frances McIntyre sentenced Capello to six months probation under the condition that full restitution be paid to the Commonwealth’s Department of Unemployment Assistance. Capello and Ieraci satisfied the terms of probation and paid full restitution, bringing his company up to date with its payment with the DUA.
Capello is the president, secretary, treasurer, director and resident agent of Ieraci, a Newtonville landscaping company incorporated in 1997. Beginning in the second quarter of 2006 and occurring at various times through December 2011, Capello and Ieraci failed to pay employer tax contributions. As a result of the nonpayment, Capello and Ieraci failed to pay more than $105,000 in employer contributions.
A Suffolk County Grand Jury returned indictments against Capello and Ieraci on March 26, 2012. Capello was arraigned April 24, 2012 in Suffolk Superior Court where he pleaded not guilty and was released on personal recognizance. Ieraci was arraigned on June 6, 2012 where a not guilty plea was entered on the company’s behalf. Capello admitted to sufficient facts in connection to the charges on January 11. Capello and Ieraci paid full restitution. The corporation is currently up to date on the payments of their obligations to the DUA.
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 2012, the IUFD obtained more than $1,647,000 in restitution orders in 32 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.
This matter was prosecuted by Assistant Attorney General Stephen Adams of AG Coakley’s Insurance and Unemployment Fraud Division with assistance from investigators Christopher Gabriel and Rose Bagalawis the Attorney General’s Office and Richard Carney, Director of Revenue Enforcement and Audit, from EOLWD\DUA.