Business Owner Accused Of Racketeering, Theft 1-14-2011 - KPTV - FOX 12

Business Owner Accused Of Racketeering, Theft 1-14-2011

Stephen G. Nagy’s business, S&S Drywall Assemblies, is closed after investigators executed a search warrant in October.
The search warrant came after a year-long investigation in which prosecutors say Nagy, the owner, failed to pay fair wages.
Nagy kept his head low in a Washington County courtroom Thursday afternoon as he was arraigned on charges of racketeering, theft, money laundry and forgery.
Investigators accused Nagy of not paying proper wages to his carpenters.
Last year, several local unions started protesting S&S Drywall and the company became wrapped up in a labor dispute.
“They're a company that pays way below area standard wages,” says Jason Sheckler, who last year protested a job site of S&S Drywall in Beaverton.
Jack Gamboa works for the Pacific Northwest Regional Council of Carpenters and says his organization was very concerned after hearing Nagy’s company failed to pay standard wages.
"It’s good to see justice finally come to this individual who has been cheating the people in the state of Oregon,” Gamboa says.
Nagy has been under investigation by the state for more than a year. Prosecutors claim he also engaged in money laundering. Court documents say Nagy destroyed vital records the state had subpoenaed.
In January 2009, the FOX 12 investigators team sat down with Nagy and he defended his business practices.
“We are paying above the state average wage for carpenters,” Nagy said.
Prosecutors have also charged Nagy with 20 counts of being a felon in possession of a firearm.
After his arraignment, Nagy and an unidentified woman both declined to comment.
Investigators say there could be more charges filed in the case. A judge set Nagy’s bail at $280,000.
Nagy's family members declined to comment, but off-camera they say they stand by Nagy and say the allegations against him are unfounded.
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