Cases of fraud and wage violations continue to soil the image of the construction industry during this labor shortage
The National Law Review
FEBRUARY 28, 2019
Every week there seems to be yet another item in the news about contractors being charged with fraud, wage theft and more. This week is no different, unfortunately.
In Arkansas, Matthew Beasley, President of Cobas, Inc. construction company in Conway, AK, was sentenced to 36 months in federal prison for defrauding a bank by creating fraudulent invoices. According to the Unisted Sates Department of Justice press release, Cobas would perform construction work for other companies and send invoices for that work.
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Meanwhile in Massachusetts, a state that has been under scrutiny for construction wage theft, Attorney General Maura Healy issued 165 civil citations against 66 construction companies in 2018. According to a press release from the Attorney General, restitution in 2018 exceeded $1.47 million for more than 1,030 employees, and the companies were fined more than $1.23 million.
Violations included:
- Failure to page proper wages
- Failure to pay overtime
- Retaliation
- Failure to furnish records for inspection
- Failure to pay prevailing wage
- failure to submit true and accurate certified payroll records
- Failure to register and pay apprentices appropriately
“Workers in the construction industry are particularly vulnerable to wage theft from dishonest contractors who cheat their workers,” said AG Healey. “As Massachusetts undergoes a historic construction boom, my office will continue to fight for exploited workers and ensure they are paid the wages they earn.”