An executive at Wilmington-based NER Construction Management Corp. has been accused of underreporting overtime hours worked by the company’s union employees.

Frank Loconte, 61, of Beverly, faces 13 separate federal charges including mail fraud and failing to collect and pay payroll taxes.

Loconte was president of NER Construction from 2009 to 2022 and its employment management company, NER Management LLC, responsible for collective bargaining with construction unions like Bricklayers and Allied Craftsmen Local Union No. 3 and various local unions affiliated with the Massachusetts and Northern New England Laborers’ District Council of the Laborers International Union of North America.

Federal prosecutors say Loconte paid some of the overtime hours worked by NER’s union employees without ensuring NER made the standard tax withholdings and payments to union benefit funds. At times, Loconte even paid these employees entirely in cash or check, prosecutors claim.

Instead, he used NER business accounts to pay for personal expenses like personal property taxes, home improvements and golf memberships, prosecutors claim, and didn’t report these benefits to the IRS.

The net effect, prosecutors say, was that the unions representing NER employees were defrauded of $1 million and Loconte caused NER to not pay over $3 million in payroll taxes and union dues withholdings.