Press Release  Woburn Company and Executives Charged with Failing to Pay Unemployment Contributions

Boston — The president and treasurer of a Woburn-based waterproofing company have been indicted on charges of unemployment fraud in connection with allegedly failing to pay unemployment insurance contributions to the Department of Unemployment Assistance, Attorney General Maura Healey announced today.

Theodore Fernand, 36, of Groton, Alek Rielly, 38, of Pepperell, and the registered corporation for which they worked, Atlantic Restoration Corporation (ARC), of Woburn, were indicted Thursday by a Suffolk County Grand Jury on charges of Unemployment Fraud. Their arraignment is scheduled for Aug. 25 in Suffolk Superior Court.

“Workers who have lost their jobs rely on the unemployment insurance program for assistance,” AG Healey said. “By not paying into the program, these defendants unfairly placed a burden on businesses in Massachusetts that comply with the law.”

This investigation was referred to the Attorney General’s Office by the Executive Office of Labor and Workforce Development’s Department of Unemployment Assistance (EOLWD/DUA).

An investigation revealed that Rielly, vice president and treasurer of ARC, and Fernald, president and secretary of ARC, allegedly failed to pay more than $89,000 in tax contributions between 2012 and 2014.

The DUA provides temporary assistance to unemployed workers through the Unemployment Insurance (UI) program, which is funded by employer contributions. Private employers like ARC are required to pay quarterly contributions into the trust fund based on the number of workers they employ and how often their workers have accessed UI benefits, among other factors. 

The DUA’s Program Integrity Department 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 Program Integrity Department 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 Unit 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 state’s unemployment insurance and workers’ compensation systems.

To report unemployment fraud call the EOLWD/DUA’s Fraud Hotline @ 1-800-354-9927 or visit: http://www.mass.gov/lwd/ui-fraud anytime, 24 hours a day. Callers may remain anonymous.

This case was handled by Assistant Attorney General Sara Shannon of AG Healey’s Insurance and Unemployment Fraud Unit with assistance from Philip Mantyla, Senior Investigator, also of AG Healey’s Insurance and Unemployment Fraud Unit, and investigators from the DUA.

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