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The former head of NER Construction Management Corp. has admitted to a payroll fraud operation.

The Massachusetts U.S. Attorney’s Office said Frank Loconte, 62, pleaded guilty to one count of mail fraud an one count of failing to pay taxes. Sentencing is set for Nov. 29. Loconte faces up to five years in prison, two years of supervised release and fines of up to $250,000.

Prosecutors said Loconte underreported overtime worked for NER by construction workers affiliated with Bricklayers and Allied Craftsmen Local Union No. 3 and others in order to reduce payments NER was contractually obligated to make towards its workers’ pension funds. The scheme also meant that NER never paid payroll taxes to the Internal Revenue Service on those overtime hours, as well, and sometimes paid employees in cash for overtime hours worked.

The scheme lasted from 2014 to 2022 when Loconte’s employment with NER ended, prosecutors said, during which he defrauded his workers of over $1 million in overtime pay and failed to pay $3 million in federal payroll taxes and union dues.