The use of low-wage underground carpenters and drywall workers in Portland has landed a specialty subcontractor in hot water and, pending the outcome of his trial, a possible term in jail. An article in Oregon Business explains:
“The subcontractor is Stephen Nagy, formerly president of S&S Drywall Assemblies, arrested January 2011 and charged with racketeering, theft and other crimes related to shady business practices. S&S has shut down its Hillsboro office and disconnected its phone line while Nagy awaits trial.”
The regional carpenter’s union, itself the target of questionable practices from some of its critics, is protesting the shady practices of S&S by picketing outside the office of the general contractor who hired the sub. The general manager of S.D. Deacon claims that his company did not know “what might have been going on behind the scenes” at S&S Drywall.
Based on information that Construction Citizen is receiving from around the country, this is a widespread practice and is making it difficult for responsible subs to compete for work, even on public projects.
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Nagy found guilty
A press release from attorney general John Kroger’s office states:
“Stephen Gregory Nagy pleaded guilty on July 29 in Washington County Circuit Court to Criminal Antitrust, Racketeering and Felon in Possession of a Firearm charges. He was sentenced to 30 days in jail and five years of supervised probation. S&S Drywall Assemblies was ordered dissolved.”
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