Pennsylvania Contractor to Pay $20,696,453 for Largest Prevailing Wage Criminal Case in U.S. History
On August 3, 2021, Attorney General Josh Shapiro announced that Pennsylvania construction contractor, Glenn O. Hawbaker, Inc. (“Hawbaker”) has pleaded to and been sentenced for theft relating to violations of the Pennsylvania Prevailing Wage Act and the federal Davis-Bacon Act. The no contest plea includes paying $20,696,453 in restitution to 1,267 affected victims.
Hawbaker pleaded no contest to four felony counts of Theft by Failure to Make Required Disposition of Funds Received, 18 Pa.C.S. § 3927(a), graded as first-degree felonies, based on conduct in the years 2015-18 (subject to the applicable statute of limitations as modified by the parties’ Tolling Agreements).
A press release from the office of AG Shapiro said that Hawbaker committed this theft by using money intended for prevailing wage workers’ retirement funds to contribute to retirement accounts for all Hawbaker employees – including the owners and executives. They were also charged with stealing funds intended for prevailing wage workers’ health and welfare benefits, and using them to subsidize the cost of the self-funded health insurance plan that covers all employees. AG Shapiro’s office said Hawbaker disguised its scheme by artificially inflating its costs by millions of dollars each year and claiming credit for prohibited costs.
The company was sentenced to serve a concurrent five-year term of probation on each count, with the sentences to run concurrent to each other. As a condition of probation, Hawbaker will submit to oversight by Corporate Monitor Alfred B. Robinson, Jr., former acting administrator for the U.S. Department of Labor Wage & Hour Division, for compliance with all state and federal prevailing wage laws during the five-year term of probation. The case was heard before President Judge Pamela A. Ruest of the Centre County Court of Common Pleas.
Source: Commonwealth v. Glenn O. Hawbaker, Inc. No. CP-14-CR-461-2021