Those projects included Bedford's Public Library, Everett Housing Authority, Northern Essex Community College, and the new golf clubhouse at Franklin Park in Boston. Phillips and Electrical Energy Services, Inc., are accused of embezzling those funds, which were never actually remitted to the pension and benefit plans. The misuse of employee benefit funds of any kind will not be tolerated and will be prosecuted to the full extent of both state and federal laws as appropriate. The Pension and Welfare Benefits Administration has responsibility for enforcing federal laws covering private employee pension and benefit plans. Electrical Energy Services, Inc., which is no longer in operation, faces similar fines and debarment.
All defendants are innocent until proven guilty.
The case is being prosecuted by Assistant Attorneys General Karla Zarbo and Dan Field with the assistance of Inspector Greg Reutlinger of A.G. Reilly's Fair Labor Division and the Boston Regional Office of the U.S. Labor Department's Pension and Welfare Benefits Administration.