State College Construction Firm Charged, Accused Of Stealing Millions From Workers And Defrauding Taxpayers

A construction firm is accused of stealing workers' healthcare and retirement money. Attorney General Josh Shapiro said it's the largest prevailing wage criminal case in the country's history.

Video Transcript

STACY SMITH: A construction firm is accused of stealing workers' health care and retirement money. Attorney General Josh Shapiro says it is the largest prevailing wage criminal case in this country's history. Glenn O. Hawbaker Incorporated is charged with violating federal and state wage laws.

Hawbaker has received almost $2 billion in PennDOT contracts since 2003. Shapiro says the company failed to pay workers required benefits, essentially stealing more than $20 million from them. Shapiro says it included $15 million in retirement benefits in just the last five years.

JOSH SHAPIRO: The guys doing the backbreaking work on Pennsylvania's roadways had their retirements stolen from them in order to go into the pockets of the C-suite executives. That's how the fraud work.

STACY SMITH: Investigators say the allegations of theft go back decades, but the company can only be charged for the last five years due to the statute of limitations. The contractor apparently blamed bad advice from a former company attorney.