Farmington Businessman Enters Plea In Pension Laundering Case

FARMINGTON, CT — A business owner with Farmington ties has entered a plea in a money laundering scheme, a leading prosecutor said.

John Durham, United States attorney for the District of Connecticut, said Wednesday that Lee Ferguson, 62, of Farmington, waived his right to be indicted and entered a guilty plea before U.S. District Judge Michael P. Shea in Hartford to one count of money laundering. The case stems from a scheme in which he stole more than $3.3 million dollars from his employees, Durham said.

According to court documents and statements made in court, Ferguson owns and operates Ferguson Electric and Ferguson Mechanical, both headquartered in Plainville.

Between approximately 2013 and 2017, Ferguson arranged to be deducted approximately $1.60 to $3.15 per hour from each of his employee’s fringe benefits packages as a "third-party administrator fee."

The money was for the employees’ pension plans, Durham said.

Ferguson the money was then "paid over" to TPA of Connecticut, a company that Ferguson established and controlled, Durham said.

TPA of Connecticut, in turn, sent the funds to DJS Associates, a Florida company that Ferguson formed for the "purported purpose of performing business-consulting services for him and his companies." No such "services" were performed and Ferguson used the funds for "personal expenses," Durham said.

Through the scheme, Ferguson stole a total of $3,357,516 from more than 300 employees. according to case records.

Judge Shea scheduled sentencing for Oct. 24, 2019, at which time Ferguson faces a maximum prison term of 10 years.

Ferguson is released on a $50,000 bond pending sentencing.

Ferguson issued a statement through a spokesman:

"The crime that I pled guilty to today is the result of my actions, and mine alone. I take full and complete responsibility. At no time did anyone else at my former companies participate in or was aware of my actions or motives. I deeply regret any pain that this has caused my former employees and my family."

Ferguson resigned as president and chief executive officer of Ferguson Electric Co., Inc. and Ferguson Mechanical Co., Inc., effective April 1, 2019 and has relinquished all of his interests in the companies, the spokesman said.