Monday, October 26, 2020

Former owner of Plainville electrical contractor jailed for stealing $3.3M from employees


The former owner of Plainville’s Ferguson Electric and Ferguson Mechanical Co. Inc. will spend 20 months in federal prison for bilking more than $3.3 million from his 300-plus employees, prosecutors say.

Lee Furguson, 62, of Farmington, was also sentenced Monday in Hartford federal court to one year of supervised release and ordered to pay a $200,000 fine for stealing about $1.60 to $3.15 an hour from each of his employee’s fringe benefits as a “third party administrator fee” for the employees’ pension plans, the Connecticut U.S. Attorney’s Office said.

Ferguson, who led the business from 1983 to spring 2019, pleaded guilty to one count of money laundering last July. He is free on a $50,000 bond, and must report to federal prison on April 28, authorities said.

According to investigators, from approximately 2013 to 2017, Ferguson deducted money from employees’ hourly pay for their pension plans, but he instead diverted the money to TPA of Connecticut, a Florida company that he formed.

- Advertisement -

TPA then sent the money to another Florida company Ferguson established, DJS Associates, which prosecutors said he created to perform business-consulting services for himself and his companies. However, Ferguson used the funds entirely for personal expenses, and the business did not provide any services.

Through the scheme, Ferguson stole more than $3.3 million from more than 300 employees, prosecutors said. He has since made full restitution.

Ferguson Electric was founded in the 1920s by Roy T. Ferguson and specialized in industrial and electrical services, according to the company’s website. His son, Thomas R. Ferguson, took over the business in 1948 before Lee Ferguson assumed leadership in 1983.

Lee Ferguson resigned from the company last spring, and his son, Ryan Ferguson, assumed the role of president. Today, the company employs more than 150 full-time workers.

- Advertisement -

“He has taken full and complete responsibility and at no time did anyone else at his former companies participate in or was aware of his actions or motives,” a company spokesman said Tuesday. “Full restitution had been made to effected employees prior to his sentencing today.”


Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

UAE suspends licences of 200 law firms over anti-money laundering compliance

Practicing licences of 200 law firms in the UAE have been suspended for a month for not following the prescribed procedures to combat money...

Former Harris County deputy constable pleads guilty to transporting drug money and heroin

A former Harris County deputy constable and her husband pleaded guilty Wednesday to charges of conspiracy to possess with intent to distribute heroin, according...

Guatemala seeks arrest of ex-minister linked to a $16m cash discovery

Guatemalan prosecutors are seeking the arrest of the former communications minister for ex-President Jimmy Morales on money laundering charges after finding a connection to...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks