AG Accuses Methuen A&J Disposal of Failing to Pay Taxes

Maura Healey

The owner of a Methuen disposal company is facing charges in connection with failing to pay more than $184,000 into the Commonwealth’s unemployment trust fund, according to Massachusetts Attorney General Maura Healey.

Rafael Arias, 43, of Methuen, owner of A&J Disposal, pleaded not guilty at his arraignment Friday in Suffolk Superior Court. He is charged with 12 counts of non-payment of employer contributions. The case is the result of an investigation referred to the attorney general’s Office by the Executive Office of Labor and Workforce Development’s Department of Unemployment Assistance (DUA).

According to authorities, Arias was the president and director of A&J Disposal, a construction material disposal and trucking company that dissolved in June, 2014. A&J Disposal was required to pay unemployment contributions to DUA. Authorities allege that from January, 2011, through October, 2013, Arias continued to pay his employees and file the company’s tax reports, but failed to pay the required unemployment tax to DUA resulting in delinquent payments of more than $184,000.

A Suffolk County Grand Jury returned indictments against Arias and A&J Disposal on Feb. 12. Arias was released on personal recognizance. He is due back in court on April 22 for a pre-trial conference. Clerk Magistrate Anne Kaczmarek presided over the arraignment.

This case is being prosecuted by Assistant Attorney General Joshua Pakstis of Healey’s Insurance and Unemployment Fraud Division with assistance from investigator John Keating of the attorney general’s office, and Joe Pacheco, DUA’s director of audit and enforcement.