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The Chelmsford Housing Authority and Stratford Capital Group, partners in the Chelmsford Woods Residences affordable housing complex, have condemned Callahan, Inc.’s performance as a general contractor, stating that the significant problems encountered on Phase I of the development “could have been avoided with proper attention and oversight by Callahan.”

In a letter obtained through a Freedom Of Information Act (FOIA) request to the Chelmsford Housing Authority, Executive Director David Hedison concluded that he “cannot support contractors that engage in activities that may be fraudulent, negligent or inattentive to the laws at any level. In this instance, the business practices of Callahan, Inc. are completely unacceptable,” and insists that Stratford Capital Group does not hire Callahan for Phase II of the project.
Hedison referred to a series of “incidents” at the property, including a violent disturbance involving subcontractor J Kerrissey LLC (whose own violations are well documented) and noted “that Callahan, Inc. knew its subcontractor had an outstanding arrest warrant” (letter dated September 6, 2016). The letter also details the $91,000 OSHA violation against Force Corporation (a regular Callahan subcontractor) and an additional $1.3 million in unpaid OSHA fines and fees.

Richard Hayden, Executive Vice President of Stratford Capital Group, responded by acknowledging that the problems were Callahan’s responsibility, and wrote that “Stratford has been profoundly dissatisfied with Callahan’s performance and administration of the job for CWR [Chelmsford Woods Residences].” He agreed that Callahan was “not suitable” as a contractor for Phase II, and assured the Housing Authority that Stratford will not contract with Callahan.

As a result of this experience, Stratford Capital Group is implementing language in all of their contracts stating that no contractor with a violation during the past three years will be permitted to work on a Stratford project. Any contractors found to be violating this provision or misrepresenting its record will be terminated.

The complaints found within these letters indicate the severity of the problems with Callahan, Inc, and the network of subcontractors it relies on. Problems like these are endemic to Callalhan’s business model, and the list of communities and developers condemning the contractor continues to grow.

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Joseph Kerrissey, whose company J Kerrissey LLC worked for Callahan on multiple projects, allegedly owes workers more than $100,000 in connection with a wage theft scheme dating back to 2011, according to an investigation from the MA Attorney General’s office. Kerrissey and his companies are also being charged with larceny and unemployment fraud for failing to contribute to the Unemployment Insurance Trust Fund.

The investigation found that Kerrissey owes approximately $105,000 to 31 workers, with an average amount of $3,000 per worker. Additionally, by failing to contribute to the Unemployment Insurance Trust Fund, contractors like Kerrissey hurt legitimate companies who pay their fair share, raising rates for everybody.

In December of 2015, a number of workers came forward to say that they had not been paid for their work. Following those complaints, Joseph Kerrissey sent threatening text messages to those workers for speaking out, and continued to make excuses for not paying the workers.

“This defendant allegedly engaged in a pattern of refusing to pay his workers the wages they were rightfully owed and used a variety of methods to dissuade them from seeking to obtain those wages,” said MA Attorney General Maura Healey. “People who work hard should be able to provide for themselves and their families and we will continue to hold accountable employers who exploit their workers.”

J Kerrissey LLC has been used on Callahan projects dating back to at least 2011, including Hanover High School, the Quincy YMCA, and Chelmsford Woods Multi-Family Housing. Kerrissey and his companies (J Kerrissey LLC and Sunrise Equipment & Excavation, Inc) were indicted by a Statewide Grand Jury.

Below is the full list of charges facing Joseph Kerrissey and his companies. Subcontractors like Kerrissey are part of Callahan’s business model. 

Full list of charges:

Joseph B. Kerrissey, III

  • Non-payment of Employer Unemployment Contribution
  • Larceny by Check over $250
  • Larceny by Check under $250
  • Failure to Submit True and Accurate Certified Payroll Records to the Awarding Authority
  • Failure to Submit True and Accurate Certified Payroll Records to the Attorney General
  • Failure to Pay Prevailing Wages
  • Failure to Pay Wages
  • Failure to Pay Overtime
  • Failure to Provide a Suitable Paystub

J. Kerrissey, LLC

  • Non-payment of Employer Unemployment Contribution
  • Larceny by Check over $250
  • Larceny by Check under $250
  • Failure to Submit True and Accurate Certified Payroll Records to the Awarding Authority
  • Failure to Pay Prevailing Wage
  • Failure to Pay Wages
  • Failure to Pay Overtime
  • Failure to Provide a Suitable Paystub

Sunrise Equipment & Excavation, Inc.

  • Failure to Submit True and Accurate Certified Payroll Records to the Awarding Authority
  • Failure to Submit True and Accurate Certified Payroll Records to the Attorney General
  • Failure to Pay Prevailing Wage

 

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