Boston longshoremen plead guilty in fraud case
The Massachusetts Office of Attorney General said nine Boston longshoremen have either pleaded guilty or have been convicted at trial for crimes related to payroll or benefits fraud for longshoreman labor provided to the Massachusetts Port Authority.
The office began an extensive criminal investigation in April 2005, after Massport contacted it about concerns that longshoremen were placing young children on the payroll at the docks.
State Police and financial investigators assigned to the Attorney General’s Office uncovered widespread instances where longshoremen were participating in schemes to defraud Massport and other marine shipping businesses operating at the port. Cases are pending against 11 other defendants.
The office said last week Phillip Marotta, 53, of Tewksbury, pled guilty to charges of procurement fraud, conspiracy to submit false entries in corporate books, and conspiracy to commit larceny over $250. Suffolk Superior Court Judge Margaret Hinkle sentenced Marotta to 18 months supervised probation, during which he must perform 150 hours of community service, and pay restitution of $8,861 on the charge of procurement fraud. Hinkle also sentenced Marotta to 18 months supervised probation on each of the remaining charges. All of these sentences will run concurrently.
Another longshoreman, James Langan Jr., 62, of Arlington, also pled guilty in Suffolk Superior Court to charges of procurement fraud, conspiracy to submit false entries in corporate books, and conspiracy to commit larceny over $250. On the charge of procurement fraud, Hinkle sentenced Langan to two years in the House of Correction, with the sentence suspended for two years. Hinkle ordered Langan to pay $10,228 in restitution within the first year of his probation, and he must also pay a $10,000 fine. Langan was also sentenced to two years suspended sentence, on each of his remaining charges. These sentences will also run concurrently.
Twenty defendants were indicted in August 2006 along following an in-depth investigation into payroll fraud schemes involving longshoremen who load and unload container ships at Massachusetts Port Authority’s Conley Terminal in South Boston.
The Attorney General’s office said Massport officials cooperated and assisted with their investigation. Investigators from the U.S. Department of Labor Employee Benefits Security Administration and Office of Labor Racketeering and Fraud Investigations assisted in the investigation.