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Ex-drywall contractor’s federal sentence is 19 months

By: Stephanie Basalyga//September 29, 2014//

Ex-drywall contractor’s federal sentence is 19 months

Stephanie Basalyga//September 29, 2014//

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A former Hillsboro drywall contractor was sentenced in the U.S. District Court of Oregon on Friday for antitrust charges related to a project in Portland’s Pearl District.

Stephen Gregory Nagy, who formerly owned S&S Drywall, will spend 19 months in prison for racketeering and antitrust violations related to bid rigging on an undisclosed condominium project. He is scheduled to begin serving his sentence Dec. 2.

In July 2011, Nagy pled guilty in Washington County Circuit Court to antitrust and racketeering charges brought against him by the . He was sentenced to 30 days in jail and five years of supervision upon release.

The charges stemmed from Nagy’s participation in a bid-rigging scheme that resulted in his Hillsboro-based company receiving a $1.2 million contract for the $24 million condominium project.

An investigation by the DOJ revealed that in addition to bid rigging, Nagy 鈥渇raudulently induced鈥 the state to issue unemployment benefits to employees at his company, and forced some of his workers, who were earning prevailing wage while working on the project, to return 鈥渓arger percentages鈥 of their pay to him, according to a DOJ press release.

As part of his punishment in 2011 for pleading guilty to the DOJ charges, Nagy was ordered to dissolve S&S Drywall. He also lost his state-issued contractor’s license (and cannot apply for another until 2031) and can only seek employment in the industry if he reveals his convictions to future employers.

Nagy’s sentence on Friday was related to similar charges brought against him at the federal level. Under the terms of the sentence given Friday, Nagy will spend three years under supervision once he is released from prison. He also must pay $481,000 to the Internal Revenue Service.



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