‘Major updates’ expected Tuesday in Glenn O. Hawbaker criminal case, PA AG’s office says
A Centre County company facing four criminal counts of theft is set to appear in court Tuesday morning, followed by a news conference in Harrisburg by Pennsylvania Attorney General Josh Shapiro to announce “major updates” in the case.
Glenn O. Hawbaker Inc., a construction contractor, was charged in April with four felony counts of theft by failure to make the required disposition of funds, after an investigation into the company’s practices for calculating and claiming fringe benefit credits concluded. Shapiro said the business stole more than $20 million from workers for more than three decades.
According to court documents, Hawbaker is scheduled for a guilty plea at the 10 a.m. hearing in front of Centre County President Judge Pamela Ruest at the Centre County Courthouse. A Hawbaker representative was not immediately available to comment and it’s unclear what charges the company — no individuals were charged — would plead guilty to.
In April, prosecutors said the business stole wages from its employees by using money that was intended for retirement funds of prevailing wage employees and instead contributed to retirement accounts for all Hawbaker employees, including the owners and executives.
In a statement from its attorneys in April, Hawbaker said that since learning of the attorney general’s investigation in 2018, it has cooperated fully.
“While we believe that we have always acted in accordance with all state and federal laws, in an abundance of caution, the company immediately changed its prevailing wage practices,” the company’s attorneys wrote. “These changes remain in effect today as we continue to do what’s right for our employees, both past and present.”
The company was also accused of stealing funds intended for health and welfare benefits to subsidize the cost of a self-funded health insurance plan that covers all employees, state prosecutors wrote.
The “massive, unprecedented fraud” led to the largest prevailing wage criminal case in history, Shapiro said during an April press conference.
After the charges were filed, Hawbaker was temporarily suspended from bidding on or participating in contracts for new state highway projects, but in June, the Commonwealth Court ruled that the suspension violated due process. The suspension was lifted early.
Hawbaker is also defending against a class-action lawsuit, as it was sued by a former employee.
Hawbaker is one of the largest contractors to complete projects on behalf of the commonwealth, according to a press release from Shapiro’s office. It received an estimated $1.7 billion in funding as of 2021.
