Frank Loconte, president of NER Construction Management Corporation and NER Management LLC, based in Wilmington MA was sentenced to 20 months in prison following his involvement in a fraudulent payroll scheme. He was also ordered to pay over $4.5 million in restitution and a $15,000 fine.

Loconte pleaded guilty in September 2023 to charges of mail fraud and failure to pay taxes.

From January 2014 to May 2022, Loconte systematically underreported overtime hours worked by union employees and failed to make the necessary payroll tax withholdings and payments. He also failed to contribute to pension benefit plans and deduct union dues from workers’ pay.

Some employees were paid in cash for overtime while others were paid by check without the proper withholdings. Loconte’s false reporting to the benefit funds, unions, and the IRS resulted in a deprivation of contributions and tax payments totaling more than $4 million. In addition, Loconte used NER business accounts for private expenses.