Construction company owners accused of cheating employees out of $190G

The owners of a New Jersey construction company are facing felony charges after being accused of swindling their employees out of $190,000 in wages and benefits that ought to have been collected for work done during three Rockland County sewer projects.

Kenneth Deaver, 54, and Diane Deaver, 49, both of 29 Crystal Farm Drive, Warwick, N.Y., were arraigned Monday at the Rockland County Courthouse, where each was charged with 53 various felony and misdemeanor counts, Rockland County District Attorney Thomas Zugibe said.

The Deavers, owners of Schenley Construction, Inc., of Hewitt, N.J., are accused of paying at least 21 employees a wage rate below what is required by state law. The couple is also accused of failing to provide benefits, such as health insurance, or paying their employees a cash equivalent, Zugibe said.

Between 2008 and 2010, Schenley was under contract with the town of Clarkstown, the village of Hillburn and the village of Sloatsburg to complete sewer projects in each of the municipalities, Zugibe said.

During that time, the local government officials paid the construction company for the completed work under the assumption that the Deavers' were compensating their employees properly. The couple is believed to have falsified payroll information submitted to the town and villages to hide the fact that they were pocketing the money, Zugibe said.

Zugibe said that not only are the employees victims of the theft, but that taxpayers, whose money funded the projects, were short-changed as well.

Because the couple failed to pay the prevailing wage, Zugibe said it's possible the employees hired to complete the project lacked the proper qualifications and that such a situation, particulary in the case of public works projects, can result in safety concerns.

The investigation into the alleged theft was handled by the state Department of Labor and the Rockland County Special Investigations Unit.

The Deavers, who were arrested Friday on a sealed indictment, were each charged with one count of second-degree grand larceny, 10 counts of third-degree grand larceny, six counts of fourth-degree grand larceny, one count of willful failure to pay prevailing wage and 31 counts of first-degree offering a false instrument for filing, all felonies.

The couple also faces four counts each of petty larceny, a misdemeanor, Zugibe said.

Kenneth and Diane Deaver on Monday appeared before state Supreme Court Justice William A. Kelly, who set bail at $75,000 cash or $150,000 bond.

Officials at the Rockland County Jail said Diane Deaver had made bail, but Kenneth remained in custody. The pair, who each face up to 15 years in state prison, are to return to court Jan. 18.

It was not clear if the Deavers had obtained an attorney and there was no telephone number listed for their Warwick home. Several calls to Schenley Construction went unanswered.

Source: James O'Rourke, LoHud.com