Methuen Disposal Company and Owner Arraigned in Connection with Failing to Pay into the Unemployment Trust Fund
Business Failed to Pay More Than $184,000 in Tax Contributions
BOSTON – A Methuen disposal company and its owner have been arraigned in connection with failing to pay more than $184,000 into the Commonwealth’s unemployment trust fund, Attorney General Maura Healey announced today.
Rafael Arias, 43, of Methuen, and his company A&J Disposal, Inc., are each charged with Non-Payment of Employer Contributions (12 counts).
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).
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.
According to authorities Arias was the president and director of A&J Disposal, a construction material disposal and trucking company that dissolved in June 2014. A&J Disposal was required to pay unemployment contributions to DUA. Authorities allege that from January 2011 through October 2013 Arias continued to pay his employees and file the company’s tax reports, but failed to pay the required unemployment tax to DUA resulting in delinquent payments of more than $184,000.
A Suffolk County Grand Jury returned indictments against Arias and A&J Disposal on Feb. 12. The defendants were arraigned today in Suffolk Superior Court where each pleaded not guilty. Arias was released on personal recognizance. He is due back in court on April 22 for a pre-trial conference. Clerk Magistrate Anne Kaczmarek presided over the arraignment.
DUA’s Revenue Audit and Enforcement Division focuses on the prevention, detection and the investigation of those who defraud or attempt to defraud the unemployment insurance program. Once fraud is detected, the Revenue Audit and Enforcement works aggressively with the Attorney General’s office and other agencies to recover money owed to the Unemployment Insurance Trust Fund.
AG 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 EOLWD/DUA’s Fraud Hotline at (800) 354-9927 or visit: www.mass.gov/lwd/ui-fraud anytime, 24 hours a day. Callers may remain anonymous.
This case is being prosecuted by Assistant Attorney General Joshua Pakstis of AG Healey’s Insurance and Unemployment Fraud Division with assistance from investigator John Keating of the Attorney General’s Office, and Joe Pacheco, Director of Audit and Enforcement from EOLWD\DUA.