Plainville Business Owner Stole $3.3 Million From Employees: Feds

PLAINVILLE, CT — An electrical contractor has pleaded guilty to charges that he stole $3.3 million from his own employees via a money laundering scheme, according to a statement from federal prosecutors. Lee Ferguson, 62, of Farmington, owns and operates Ferguson Electric and Ferguson Mechanical, both headquartered in Plainville.

Between 2013 and 2017, Ferguson deducted between $1.60 to $3.15 per hour from each employee's benefit package through a "third party administrator fee" for the employees' pension plans. According to the statement, Ferguson knew that the funds were not used to cover any administrative fees for the employees’ pension plans.

Instead, this “third party administrator fee” was paid over to TPA of Connecticut, a company that Ferguson established and controlled. TPA of Connecticut, in turn, sent the monies to DJS Associates, a Florida company that 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, according to the statement.

Ferguson used this scheme to steal a total of $3,357,516 from more than 300 employees.

Sentencing is scheduled for Oct. 24, at which time Ferguson faces a maximum term of imprisonment of ten years.

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

This investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division, U.S. Department of Labor – Office of Inspector General, and U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.