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Exec pleads guilty to cheating staff out of pay, falsifying documents

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An executive of a Johnston, R.I.-based landscape and nursery company agreed to plead guilty in federal court for his role in orchestrating a scheme to avoid paying union benefits to employees who worked on two federally funded projects and for falsifying unemployment documents.

Steven Pagliarini, executive vice president and treasurer of Central Landscaping Construction and executive vice president of Central Nurseries, was arraigned Jan. 7 in a U.S. District Court. He is scheduled to plead guilty on Jan. 28, and due to the plea agreement, he will not stand trial. The court will set a sentencing date following the plea, according to Jim Martin, spokesman for the U.S. Attorney’s Office of the District of Rhode Island.

Between January 2007 and December 2010, Pagliarini submitted false documents to union welfare and pension plan administrators of two unions that represent construction equipment operators and other employees of Central Landscaping. The documents misrepresented the number of hours some employees worked and the amount of wages those employees were paid.

He also agreed to plead guilty to providing false information to the Rhode Island Department of Labor and Training (RIDLT). In order to avoid paying wages, Pagliarini reported employees of Central Nurseries had been laid off due to lack of work. In reality, Pagliarini made the employees work part-time and didn’t pay them, while RIDLT paid the employees $68,487 in unemployment compensation.

“While this is an extremely unfortunate situation, it is important to note that the company has been cooperative with the U.S. Attorney’s office throughout the investigation,” said Attorney J. Richard Ratcliffe, representing Central Nurseries, in a statement. “Mr. Pagliarini is taking full responsibility for his actions. The company has agreed to make restitution.”

In the statement, the company assured customers that its quality of service was never compromised. It also states that the company has hired a full-time human resources manager and has consulted a labor attorney to ensure it is in full compliance with all current laws and regulations.

According to the statement, Central Nurseries provides benefits for its 129 employees and nearly 300 dependents, and during the period in question, the company paid out nearly $3.1 million in employee benefits without receiving a complaint from any union organizations.

A representative from Central Nurseries and Central Landscaping Construction declined to comment further.

Court documents state Pagliarini has agreed to pay restitution of $171,685.

Update: This article was updated Jan. 22 to include statements from a Central Nurseries press release. 

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Dillon Stewart

Dillon Stewart graduated from Ohio University’s E.W. Scripps School of Journalism, earning a Bachelor of Science in Online Journalism with specializations in business and political science. Stewart is a former associate editor of LM.

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