A North Branford construction firm must serve three years of probation and pay a $200,000 fine for underfunding its retirement plan and filing a false tax return, federal authorities say.
Cherry Hill Construction Inc. was sentenced Friday in New Haven federal court, the Connecticut U.S. Attorney’s Office said.
According to court records and testimony, Cherry Hill established a profit-sharing/401(k) plan that was covered under the Employment Retirement Income Security Act of 1974 (ERISA). The act mandates minimum standards for retirement plans, including a requirement that plan sponsors adequately fund it.
Cherry Hill admitted, investigators said, to underfunding its plan by about $1 million in 2010 and 2011. The company also admitted filing a corporate tax return for 2010 that overstated the amount of its actual fund contribution, resulting in an increased employee-benefit reduction, authorities said.
The company has since fully funded its retirement plan, and paid $193,000 in back taxes, interest and penalties.
Reached Monday, Cherry Hill declined a request for comment. The company’s statewide services cover on-site crushing, trucking, demolition, top soil, aggregates and landscaping.
