Farmington Man Sentenced to Prison In Money Laundering Scheme

HARTFORD, CT — A Farmington resident who pleaded guilty to money laundering last July in connection with a scheme in which he embezzled more than $3 million from his employees was sentenced Monday to 20 months of imprisonment, followed by a year of supervised release.

Lee Ferguson, 62, pleaded guilty to one count of money laundering on July 31, 2019. He was sentenced by U.S. District Judge Michael P. Shea in Hartford, and also ordered to pay a $200,000 fine. Free on a $50,000 bond, Ferguson is required to report to prison April 28, according to John H. Durham, United States Attorney for the District of Connecticut.

Ferguson owned and operated Ferguson Electric and Ferguson Mechanical, both based in Plainville. According to court documents and statements made in court, between 2013 and 2017, Ferguson deducted approximately $1.60 to $3.15 per hour from each of his employee’s fringe benefits package as a “third party administrator fee” for the employees’ pension plans, Durham said.

Ferguson knew that the funds were not used to cover any administrative fees for the employees’ pension plans. Instead, the "fee” was paid over to TPA of Connecticut, a company Ferguson established and controlled. TPA of Connecticut, in turn, sent the monies to DJS Associates, a Florida company Ferguson formed for the purported purpose of performing business-consulting services for him and his companies. However, 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. He has made full restitution, according to Durham.

Chuck Coursey, a spokesperson for Ferguson Electric Co., Inc. and Ferguson Mechanical Co., Inc., issued the following statement following the sentencing:

“Mr. Lee Ferguson resigned and relinquished all interests in Ferguson Electric Co., Inc. and Ferguson Mechanical Co., Inc. last spring. 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. Full restitution had been made to affected employees prior to his sentencing today.”