PA Contractor Accused of Creating Shell Subcontractors, Worker Misclassification Scheme

Construction firm and owner accused of funneling nearly $900,000 through middlemen to avoid paying wage, workers' comp and other taxes

October 21, 2015

The Morning Call

Salukas & White Contracting Inc., Bethlehem, Penn., and Mark White, one of Salukis' owners, are accused of breaking state law by creating subcontractors who listed employees as independent tradesmen to save the company from paying wage, workers' compensation and other taxes. According to the grand jury report, from 2011 to 2013 the company funneled more than $883,000 to middlemen.

Charges will most likely be filed within a few days and include violating the Construction Workplace Misclassification Act, perjury and false swearing. While most of the infractions are classified as misdemeanors, perjury is a felony.

(more on the fraud case against Salukis & White Contracting Inc...)

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