Two Businesses and Owners Indicted in Connection with Failing to Pay into the Unemployment Trust Fund
Businesses Allegedly Failed to Pay More Than $910,000 in Tax Contributions with Interest
BOSTON – Two businesses and their owners have been indicted in connection with failing to pay a combined total of more than $910,000 in tax contributions and interest to the Commonwealth’s unemployment trust fund, Attorney General Maura Healey announced today.
The cases are 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).
“These companies have allegedly failed to meet their obligation to pay into the unemployment assistance fund, shortchanging the fund and the people who rely on it,” AG Healey said. “Qualifying businesses that do not pay into the system create an unfair advantage over their competitors. Our goal is to ensure that these payments are made and that benefits are available for all eligible workers.”
The Department of Unemployment Assistance (DUA) administers the Unemployment Insurance program, providing temporary assistance to unemployed workers.
A Suffolk County Grand Jury returned indictments against the following businesses and their owners on Monday. The defendants are charged as follows:
PETER J. FARLEY/PJ ENTERPRISES, LLC
Peter J. Farley, 48, of Hingham, and his business, PJ Enterprises, LLC, have each been charged with Non-Payment of Employer Contributions (21 counts).
According to authorities Farley is the president and manager of PJ Enterprises, LLC, a management company that owns and operates an auto repair business. PJ Enterprises is required to pay unemployment contributions to DUA. Authorities allege that from April 2009 through October 2014, Farley failed to pay the required unemployment tax to DUA. As a result, Farley allegedly failed to pay a total of more than $594,000 in unemployment taxes and interest to the DUA.
JONATHON HILDEBRANDT/ENVIRO SERVICES, INC.
Jonathon Hildebrandt, 46, of Hanover, and his business, Enviro Services, Inc., have each been charged with Non-Payment of Employer Contributions (21 counts).
According to authorities Hildebrandt is the president, treasurer, secretary and director of Enviro Services, Inc., a temperature control and refrigeration services company based in Norwell. Enviro Services is required to pay unemployment contributions to DUA. Authorities allege that from July 2009 through January 2015, Hildebrandt failed to pay the required unemployment tax to DUA. As a result, Hildebrandt allegedly failed to pay a total of more than $316,000 in unemployment taxes and interest to DUA.
A Suffolk County Grand Jury returned indictments against the defendants on Monday. Farley and PJ Enterprises are scheduled to be arraigned on April 8 in Suffolk Superior Court. Hildebrandt and Enviro Services will be arraigned on May 4 in Suffolk Superior Court.
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 UI 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.
These cases are being handled by Assistant Attorneys General Sara Shannon and Jessica Hanley Elumba of AG Healey’s Insurance and Unemployment Fraud Division along with investigator John Keating of the Attorney General’s Office, and Joe Pacheco, Director of Audit and Enforcement, from EOLWD\DUA.